8th Pay Commission - DA, TA, HRA salary along with allowances, do you know how much?

8th Pay Commission - DA, TA, HRA salary along with allowances, do you know how much?

The 8th Pay Commission will come into effect in a few months. Under this, the salaries of central government employees and pensioners will increase significantly. Everyone is waiting for this.

There will be an increase in allowances too:

There will be an increase not only in the salaries of central government employees but also in their allowances. This will increase their total salary even more significantly. How much will the allowances of the 8th Pay Commission increase? How is the salary of government employees structured in India? What are the details of the allowances? Let's know about these.

How is the salary of government employees divided?

Experts say that the salary of government employees consists of many parts. This includes Basic Pay, Dearness Allowance, House Rent Allowance, Travel Allowance and other allowances. Also, pension after retirement will be an important part of the salary structure.

 Basic Pay

- This is the main and fixed part of the salary of a government employee. It is decided based on the promotion and length of service of the employee.

- The remaining increments are calculated based on the basic pay.

- Earlier basic pay was about 65% of the total salary, but now it is about 50%.

- The fitment factor decided in the 8th Pay Commission will be multiplied with the existing basic pay to determine the new basic pay.

Dearness Allowance (DA)

Dearness Allowance is given to the employees to help them cope with inflation. It is a percentage of the basic pay.

- And it is calculated using the Consumer Price Index (CPI).

- DA is revised twice a year in January and July.

- For example, if the basic pay of an employee is Rs. 18,000 per month and the DA rate is 50%, the DA amount will be Rs. 9,000 per month. Therefore, the total salary will be Rs. 27,000. 

- In the 8th pay commission, the existing dearness allowance will be made zero and the dearness allowance will be added to the basic pay and the calculation of dearness allowance will start at 1%, 2%, 3%.

House Rent Allowance (HRA)

HRA is provided to employees to pay the rent for living in a rented house.

- It can be 27%, 18% or 9% of the basic pay.

- This rate depends on the city where the employee works, be it X, Y or Z category.

- There are higher HRA rates in metropolitan cities.

- This allowance is expected to increase in the 8th pay commission.

Travelling Allowance (TA)

- This allowance covers travel or travelling expenses.

- It is a fixed amount.

- It depends on the salary level of the employee and the type of city

How much will the salary increase be?

- Let's understand this with an example.

 - If an employee's basic pay is Rs. 20,000 and DA is 55% (current DA), then DA will be Rs. 11,000 per month.

- In the 8th pay group, the fitment factor will be increased first.

- This will directly increase the salary.

- If the fitment factor increases from 2.57 to 3, the new salary will be around Rs. 29,000.

- That is, the total salary of the employee is likely to increase from Rs. 31,000 to Rs. 60,000 per month including the new basic pay and DA.