8th CPC DA estimates for Level 6-8 employees
The 8th Pay Commission’s two-day discussions with stakeholders started in Bengaluru on Wednesday. In the two-day meetings, the Pay Commission is discussing with central government employee and pensioner bodies and other stakeholders, matters related to salary, allowances, pension, work conditions and more.
Once the 8th Pay Commission prepares its report and Centre notifies it, the salaries of central government employees will be revised. With the salary revision, their dearness allowance (DA) will also be calculated as per their new basic salaries, which may jump the payout significantly.
The current DA rate for central government employees is 60% and it will keep rising till the 8th Pay Commission’s report is notified. Once the new salary structure is in place, DA calculation will start from 0. Once the basic pay of Level 6 to 8 employees are revised in the 8th Pay Commission, how can their DA rise and how may it impact their overall payout? Let’s find out!
How does DA impact the salaries of Level 6-8 employees?
As per the 7th Pay Commission, the starting basic salaries of Level 6, 7 and 8 employees are Rs 35,400, Rs 44,900 and Rs 47,600. At the current DA rate of 60%, their salaries will be approximately-
These salaries exclude other allowances such as HRA and TPTA.
How DA may change for Level 6-8 employee salaries in 8th CPC
Since the actual salary will be known once the 8th Pay Commission’s report is notified, we are calculating the expected jump at 2.0, 2.15, 2.28 and 2.57 fitment factors. We are taking 25% DA for the calculation as it is a significant landmark in terms of salary. At that percentage level, employees can easily figure out the difference it can make to their revised salaries.
We are not taking HRA, TPTA or any other allowances for calculation purposes.
Expected 8th CPC DA for Level 6 employees at 2.0, 2.15, 2.28 and 2.57 fitment factors
Expected 8th CPC DA for Level 7 employees at 2.0, 2.15, 2.28 and 2.57 fitment factors
Expected 8th CPC DA for Level 8 employees at 2.0, 2.15, 2.28 and 2.57 fitment factors
What is dearness allowance (DA) for central government employees?
Dearness allowance is a cost-of-living adjustment amount paid to mitigate the impact of inflation. The DA is based on the All India Consumer Price Index- Industrial Workers (AICPI-IW), which releases its monthly reading at the end of every month. The index shows rising inflation. As inflation rises, the DA also increases.
The government announces the DA twice a year, based on the index’s December and June readings. The announcement is mostly around a festival, such as Holi and Dussehra.
How is the DA added to the basic salary?
The starting basic salary of a Level 1 employee is Rs 18,000, and the DA rate is 60%, the salary of such an employee will be Rs 28,000= Rs 18,000 + (60% of Rs 18,000).
However, this is not their gross salary as employees also get house rent allowance (HRA) and transport allowance (TPTA). There are many other allowances given to specific categories of employees.
What is the formula to calculate DA?
DA% = [{12-month average of AICPI-IW (base year 2001)– 261.42}/261.42x100]
The government announces the DA in round figures. For example, if the DA is 62.59%, the government will consider it 62%. However, percentage points are adjusted to the upcoming DA cycles.
Once the 8th Pay Commission prepares its report and Centre notifies it, the salaries of central government employees will be revised. With the salary revision, their dearness allowance (DA) will also be calculated as per their new basic salaries, which may jump the payout significantly.
The current DA rate for central government employees is 60% and it will keep rising till the 8th Pay Commission’s report is notified. Once the new salary structure is in place, DA calculation will start from 0. Once the basic pay of Level 6 to 8 employees are revised in the 8th Pay Commission, how can their DA rise and how may it impact their overall payout? Let’s find out!
How does DA impact the salaries of Level 6-8 employees?
As per the 7th Pay Commission, the starting basic salaries of Level 6, 7 and 8 employees are Rs 35,400, Rs 44,900 and Rs 47,600. At the current DA rate of 60%, their salaries will be approximately-
These salaries exclude other allowances such as HRA and TPTA.
How DA may change for Level 6-8 employee salaries in 8th CPC
Since the actual salary will be known once the 8th Pay Commission’s report is notified, we are calculating the expected jump at 2.0, 2.15, 2.28 and 2.57 fitment factors. We are taking 25% DA for the calculation as it is a significant landmark in terms of salary. At that percentage level, employees can easily figure out the difference it can make to their revised salaries.
We are not taking HRA, TPTA or any other allowances for calculation purposes.
Expected 8th CPC DA for Level 6 employees at 2.0, 2.15, 2.28 and 2.57 fitment factors
Expected 8th CPC DA for Level 7 employees at 2.0, 2.15, 2.28 and 2.57 fitment factors
Expected 8th CPC DA for Level 8 employees at 2.0, 2.15, 2.28 and 2.57 fitment factors
What is dearness allowance (DA) for central government employees?
Dearness allowance is a cost-of-living adjustment amount paid to mitigate the impact of inflation. The DA is based on the All India Consumer Price Index- Industrial Workers (AICPI-IW), which releases its monthly reading at the end of every month. The index shows rising inflation. As inflation rises, the DA also increases.
The government announces the DA twice a year, based on the index’s December and June readings. The announcement is mostly around a festival, such as Holi and Dussehra.
How is the DA added to the basic salary?
The starting basic salary of a Level 1 employee is Rs 18,000, and the DA rate is 60%, the salary of such an employee will be Rs 28,000= Rs 18,000 + (60% of Rs 18,000).
However, this is not their gross salary as employees also get house rent allowance (HRA) and transport allowance (TPTA). There are many other allowances given to specific categories of employees.
What is the formula to calculate DA?
DA% = [{12-month average of AICPI-IW (base year 2001)– 261.42}/261.42x100]
The government announces the DA in round figures. For example, if the DA is 62.59%, the government will consider it 62%. However, percentage points are adjusted to the upcoming DA cycles.
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