When a pay commission is formed, every central government employee expects a big bump in their salary. The increase depends on the fitment factor, where a high fitment factor means a high raise in basic salary. But does the gross salary also rise by the same proportion? For example, a 2.0 fitment factor means a 100% rise in the basic salary. But does it also mean the gross salary of the same employee will be double? A Bankbazaar projection shows that even if the 8 th Pay Commission decides on fitment factors in the range of 2.0-2.57, the gross salary increase for Level 1-18 employees could only be 31-68%.
Past gross salary hikes under different pay commissions
Looking at the historical data from the 4 th to 7 th Pay Commissions, the maximum hike in gross salary has been 54% under the 6 th Pay Commission when the fitment factor was 1.86. The 7 th Pay Commission set a 2.57 fitment factor for central government employees, but the hike in gross salary was just 14.29%. The reason behind this indifference is that the gross salary also includes allowances such as dearness allowance (DA), house rent allowance (HRA), transport allowance (TPTA) among other allowances.
While the DA is set at 0% in the beginning of a pay commission, revised HRA is given on the basis of the revised basic pay. But other allowances can be set by the government on its own. So, when we sum these amounts, gross salary may vary because of different amounts set for non-basic pay-linked allowances.
Gross salary hike under different pay commission
| Pay Commission | Hike in Gross Pay | Fitment Factor | Minimum Basic Salary |
| 4th Pay Commission | 27.60% | — | ₹ 750 |
| 5th Pay Commission | 31% | — | ₹ 2,550 |
| 6th Pay Commission | 54% | 1.86 | ₹ 7,000 |
| 7th Pay Commission | 14.29% | 2.57 | ₹ 18,000 |
Salary components of central government employees
Salary components vary depending on work, status of job, risk in job, place of posting, etc. But the basic components of salary for most employees are basic pay, dearness allowance (DA) house rent allowance (HRA) and transport allowance (TPTA).
Estimated gross salary hike in the 8th Pay Commission
In its calculations, Bankbazaar shows the estimated gross salary increase for Level 1-10 employees at fitment factors of 2.0, 2.38 and 2.57 in the 8 th Pay Commission. A fitment factor is a multiplier for salary revision. A 2.0 fitment factor means the basic salary of an employee will double.
Particulars for gross salary growth calculation
Current salary= current basic salary (e.g., Level 1= Rs 18,000)
Gross salary= Basic salary+DA (60% of basic pay)+HRA (24% of basic pay for X category cities)
Revised basic salary= Current basic payX fitment factor
New gross salary= Revised basic salary+ 24% of revised basic salary (for X category city)
Basic pay hike (%)= Revised basic-current basic pay (%)
Gross salary hike (%)= % hike of new vs old gross salary
Growth ratio= Gross salary hike/basic pay hike
For easy understanding of readers, Bankbazaar has left out TPTA and other allowances and has taken just basic pay and HRA for gross salary calculations.
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Estimated salary growth for Level 1 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 18,000 |
| Current Gross Salary (60% DA+24% HRA) | ₹ 34,200 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 36,000 | ₹ 44,640 | 100% | 31% | 0.31 |
| 2.38 | ₹ 42,840 | ₹ 53,122 | 138% | 55% | 0.40 |
| 2.57 | ₹ 46,260 | ₹ 57,362 | 157% | 68% | 0.43 |
Estimated salary growth for Level 2 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 19,900 |
| Current Gross Salary | ₹ 37,810 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 39,800 | ₹ 49,352 | 100% | 31% | 0.31 |
| 2.38 | ₹ 47,362 | ₹ 58,729 | 138% | 55% | 0.40 |
| 2.57 | ₹ 51,143 | ₹ 63,417 | 157% | 68% | 0.43 |
Estimated salary growth for Level 3 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 21,700 |
| Current Gross Salary | ₹ 41,230 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 43,400 | ₹ 53,816 | 100% | 31% | 0.31 |
| 2.38 | ₹ 51,646 | ₹ 64,041 | 138% | 55% | 0.40 |
| 2.57 | ₹ 55,769 | ₹ 69,154 | 157% | 68% | 0.43 |
Estimated salary growth for Level 4 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 25,500 |
| Current Gross Salary | ₹ 48,450 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 51,000 | ₹ 63,240 | 100% | 31% | 0.31 |
| 2.38 | ₹ 60,690 | ₹ 75,256 | 138% | 55% | 0.40 |
| 2.57 | ₹ 65,535 | ₹ 81,263 | 157% | 68% | 0.43 |
Estimated salary growth for Level 5 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 29,200 |
| Current Gross Salary | ₹ 55,480 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 58,400 | ₹ 72,416 | 100% | 31% | 0.31 |
| 2.38 | ₹ 69,496 | ₹ 86,175 | 138% | 55% | 0.40 |
| 2.57 | ₹ 75,044 | ₹ 93,055 | 157% | 68% | 0.43 |
Estimated salary growth for Level 6 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 35,400 |
| Current Gross Salary | ₹ 67,260 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross Salary Hike | Ratio |
| 2 | ₹ 70,800 | ₹ 87,792 | 100% | 30.50% | 0.31 |
| 2.38 | ₹ 84,252 | ₹ 1,04,472 | 138% | 55.30% | 0.40 |
| 2.57 | ₹ 90,978 | ₹ 1,12,813 | 157% | 67.70% | 0.43 |
Estimated salary growth for Level 7 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 44,900 |
| Current Gross Salary | ₹ 85,310 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 89,800 | ₹ 1,11,352 | 100% | 31% | 0.31 |
| 2.38 | ₹ 1,06,862 | ₹ 1,32,509 | 138% | 55% | 0.40 |
| 2.57 | ₹ 1,15,393 | ₹ 1,43,087 | 157% | 68% | 0.43 |
Estimated salary growth for Level 8 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 47,600 |
| Current Gross Salary | ₹ 90,440 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 95,200 | ₹ 1,18,048 | 100% | 31% | 0.31 |
| 2.38 | ₹ 1,13,288 | ₹ 1,40,477 | 138% | 55% | 0.40 |
| 2.57 | ₹ 1,22,332 | ₹ 1,51,692 | 157% | 68% | 0.43 |
Estimated salary growth for Level 9 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 53,100 |
| Current Gross Salary | ₹ 1,00,890 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 1,06,200 | ₹ 1,31,688 | 100% | 31% | 0.31 |
| 2.38 | ₹ 1,26,378 | ₹ 1,56,709 | 138% | 55% | 0.40 |
| 2.57 | ₹ 1,36,467 | ₹ 1,69,219 | 157% | 68% | 0.43 |
Estimated salary growth for Level 10 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 56,100 |
| Current Gross Salary | ₹ 1,06,590 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 1,12,200 | ₹ 1,39,128 | 100% | 31% | 0.31 |
| 2.38 | ₹ 1,33,518 | ₹ 1,65,562 | 138% | 55% | 0.40 |
| 2.57 | ₹ 1,44,177 | ₹ 1,78,779 | 157% | 68% | 0.43 |
Disclaimer: Illustrative estimates based on assumed fitment factors; final pay and allowances may vary. Source: BankBazaar.com
