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8th Pay Commission: In a major development the Modi government has initiated discussions with key departments regarding the 8th Pay Commission. According to the reports the government is holding consultations with the Home Ministry Ministry of Defence Department of Personnel and Training and various state governments. It is important to note that once the commission is formally constituted and submits its report to the government there be a clear picture of the new salary structure and allowances for employees. In the 7th Pay Commission the fitment factor was 2.57. Experts now estimate that in the 8th Pay Commission it could range between 1.92 and 2.86. This means the higher the fitment factor the greater the salary hike. For example if an employees current basic salary is ₹30000 and the fitment factor is set at 2.57 the new basic salary would become ₹77100. How fitment factors of 1.92 2.28 or 2.57 may impact Grade Pay 1900 2400 4600 7600 and 8900 employees basic salary house rent allowance (HRA) transport allowance (TA) National Pension System (NPS) and Central Government Health Scheme (CGHS) amounts know in this story through calculation examples. At 1.92 fitment factor Revised basic pay: Rs 54528 HRA: Rs 13086.72 TA: Rs 3600 Gross salary: Rs 71214.72 NPS: Rs 5452.80 CGHS: Rs 250 Net salary: Rs 65511.92 At 2.57 fitment factor Revised basic pay: Rs 72988 HRA: Rs 17517.12 TA: Rs 3600 Gross salary: Rs 94105.12 NPS: Rs 7298.80 CGHS: Rs 250 Net salary: Rs 86556.32 At 1.92 fitment factor Revised basic pay: Rs 73152 HRA: Rs 17556.48 TA: Rs 3600 Gross salary: Rs 94308.48 NPS: Rs 7315.20 CGHS: Rs 250 Net salary: Rs 86743.28 At 2.57 fitment factor Revised basic pay: Rs 97917 HRA: Rs 23500.08 TA: Rs 3600 Gross salary: Rs 125017.08 NPS: Rs 9791.70 CGHS: Rs 250 Net salary: Rs 114975.38 At 1.92 fitment factor Revised basic pay: Rs 112512 HRA: Rs 27002.88 TA: Rs 3600 Gross salary: Rs 143114.88 NPS: Rs 11251.20 CGHS: Rs 650 Net salary:Rs 131213.68 At 2.57 fitment factor Revised basic pay: Rs 150602 HRA: Rs 36144.48 TA: Rs 3600 Gross salary: Rs 190346.48 NPS: Rs 15060.20 CGHS: Rs 650 Net salary: Rs 174636.28 At 1.92 fitment factor Revised basic pay: Rs 153984 HRA: Rs 36956.16 TA: Rs 7200 Gross salary: Rs 198140.16 NPS: Rs 15398.40 CGHS: Rs 650 Net salary: Rs 182091.76 At 2.57 fitment factor Revised basic pay: Rs 206114 HRA: Rs 49467.36 TA: Rs 7200 Gross salary: Rs 262781.36 NPS: Rs 20611.40 CGHS: Rs 650 Net salary: Rs 241519.96 At 1.92 fitment factor Revised basic pay: Rs 185472 HRA: Rs 44513.28 TA: Rs 7200 Gross salary: Rs 237185.28 NPS: Rs 18547.20 CGHS: Rs 650 Net salary: Rs 217988.08 At 2.57 fitment factor Revised basic pay: Rs 248262 HRA: Rs 59582.88 TA: Rs 7200 Gross salary: Rs 315044.88 NPS: Rs 24826.20 CGHS: Rs 650 Net salary: Rs 289568.68 (Disclaimer: These are projections. Actual revised amounts may vary.) We have calculated the estimated revised basic pay HRA TA NPS and CGHS payouts at 1.92 2.28 and 2.57 fitment factors. We have taked the HRA as 24 per cent of the employees basic salary TA for higher TPTA cities and CGHS at current rates. We will take 2 basic pays each from Pay Grades 1900 2400 4600 7600 and 8900.