October 8, 17:13Aaj Tak

Discussion of the 8th Pay Commission: Calculating Potential Salary Increase with a 2.15 Factor and DA Merger

The team of the Eighth Pay Commission is conducting two days of discussions in Bangalore with representatives of civil servants, pensioners, and other stakeholders to review issues related to salaries, pensions, and allowances. After Bangalore, the team plans to hold consultations in other cities to gather employee demands.

The main goal of these discussions is to prepare a final report that will then be submitted to the government for consideration and official publication. The primary concern among the public is how much the salaries of workers will increase under the Eighth Pay Commission, especially considering the merger of the Dearness Allowance (DA) with the base rate and the application of a fitment factor of 2.15.

Currently, the Dearness Allowance stands at 60% according to the Seventh Pay Commission, and this increase may remain until the official approval of the Eighth Pay Commission. With the introduction of the new salary structure, the calculation of DA will start from scratch. Next, potential salary changes for employees at levels 6, 7, and 8 after the DA merger are being considered.

According to the Seventh Pay Commission, the base salary for employees at levels 6, 7, and 8 is 35,400 rupees, 44,900 rupees, and 47,600 rupees, respectively. If the current 60% DA is included in the base rate, the base salary for a level 6 employee including DA will be 56,640 rupees, for level 7—71,840 rupees, and for level 8—76,160 rupees.

However, the actual determination of the salary will only be possible after the publication of the Eighth Pay Commission's report. Therefore, a calculation of potential growth is being conducted based on the 2.15 fitment factor. An assumption of 25% DA is used for the calculation, as this is an important stage from a salary perspective, allowing employees to easily estimate the possible difference in their adjusted salary.

Salary of Level 6 Employees
With the application of the 2.15 fitment factor under the Eighth Pay Commission and assuming 25% DA after the merger, the base salary will reach 76,110 rupees. An allowance of 19,028 rupees for inflation will be added to this amount, resulting in a total of 95,138 rupees, compared to the current 35,400 rupees.

Salary of Level 7 Employees
Similarly, with a 2.15 fitment factor, the base salary for level seven employees will increase from 44,900 rupees to 96,535 rupees. An inflation allowance of 24,134 rupees will be added to this amount, totaling 120,669 rupees.

Salary of Level 8 Employees
Based on the same premise, with a 2.15 fitment factor, the base salary for level eight employees will increase from 47,600 rupees to 96,535 rupees. A 25% DA will be applied to this, adding 24,134 rupees. Thus, the total salary under the Eighth Pay Commission will rise to 120,669 rupees.

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www.aajtak.inOctober 6, 10:15

Potential Pension Amount with the 8th Departmental Commission Review: Calculations Based on Different Coefficients

The formation of the eighth departmental commission review (8th Pay Commission) is actively being discussed in the country, raising expectations among millions of employees. This new commission review, which could potentially take effect on January 1, 2026, will depend on the Fitment Factor used in calculating pension increases.

According to the current rules of the seventh departmental commission review, the minimum basic pension is 9,000 rupees. However, depending on the fitment factor applied under the 8th departmental commission review, a significant increase is expected. Particular interest is shown by employees working under the Old Pension Scheme (OPS), who are monitoring possible changes to the basic pension after the introduction of the new commission review.

As a general rule, an employee's pension is calculated as 50% of their last basic salary or average basic salary over the last 10 months. Various trade unions demand that when determining the rules and conditions of the 8th departmental commission review, employees who retired before January 1, 2026, be included in the calculation on equal terms.

Based on data from various media and expert forecasts, if the 8th departmental commission review applies fitment factors of 2.1, 2.28, or 2.57, the following calculations for the minimum basic pension for levels 5 through 9 are possible:

Fitment Factor 2.1

Even with the minimum factor of 2.1, a substantial pension increase is expected. For level 5, the minimum basic pension may amount to about 30,660 rupees per month. For level 6, an increase to 37,170 rupees is projected. The minimum basic pension for level 7 is estimated at approximately 47,145 rupees, for level 8 at 49,980 rupees, and for level 9 at around 55,755 rupees.

Fitment Factor 2.28

With the application of a moderate factor of 2.28, the pension for level 5 will rise to 33,288 rupees per month. The pension for level 6 may reach 40,356 rupees. Level 7 employees may receive a minimum basic pension of 51,186 rupees. For level 8, the minimum basic pension will increase to 54,264 rupees, and for level 9, up to 60,534 rupees per month.

Fitment Factor 2.57

If the government maintains the factor of 2.57, similar to that in the 7th departmental commission review, pensioners will receive a significant benefit. The minimum basic pension for level 5 will be 37,522 rupees per month. For level 6, the minimum pension will rise to 45,489 rupees. The basic pension for level 7 may reach 57,697 rupees. The minimum basic pension for level 8 may reach 61,166 rupees, and for level 9, it may increase to 68,234 rupees per month.

Several organizations, including the All India Defence Employees Federation (AIDEF), insist on increasing the pension share from the current 50% of the last basic salary to at least 67%, and the family pension to 50%. Furthermore, 'Bharat Pensioners Samaj' demands that the minimum pension under the 8th departmental commission review be set at no less than 45,000 rupees monthly. After the new commission review comes into force, the current Dearness Relief (DR) factor will be zeroed out (0%), and a new inflation/assistance allowance will be established based on the adjusted basic pension.

It is important to note that all the calculations provided are based solely on hypothetical factors and approximate data; the actual pension situation will only become clear after the final recommendations of the 8th departmental commission review are approved and officially published by the central government.