8th Pay Commission: Salary of govt teachers and professors set to rise by…, here’s how to calculate it

According to reports by Ambit Capital and Kotak Institutional Equities, after implementations of 8th Pay comission salaries could rise by 13% to 34%.

8th Pay Commission: Government employees are expected to see a major salary hike once the 8th Pay Commission is implemented. For government teachers, too, the new pay structure will bring a huge increase. While there’s no official confirmation yet on exactly how much salaries will rise but media reports have been using their own formulas to estimate the hike. Brokerage firms and other experts have shared their expectations based on the likely “fitment factor,” which determines the salary increase.

8th Pay Commission: Salary As Per Fitment Factor 

Government teachers and professors will also benefit from this hike. The fitment factor plays a key role in calculating the revised salary. This time, it could range between 1.83 and 2.46.

• If the fitment factor is 1.83, salaries could rise by about 14%.
  
• If it is 2.15, the increase could be around 34%.
  
• Kotak Institutional Equities estimates the fitment factor to be 1.8, which would mean a 13% salary hike.
  

What Is Fitment Factor?

The fitment factor is the number by which your current basic salary is multiplied to calculate the new basic pay. For example, if the fitment factor is 1.8, your basic salary will be multiplied by 1.8.

However, when a new Pay Commission is implemented, Dearness Allowance (DA) is reset to zero. For example, in the previous Pay Commission, the fitment factor was 2.57. If your basic pay was Rs 10,000, multiplying it by 2.57 would give you Rs 25,700. But with DA reset to zero, the actual increase in take-home pay was relatively smaller.

To estimate your revised pay after the 8th Pay Commission, multiply your current basic salary by the projected fitment factor.