After the implementation of the 8th Pay Commission, government employees' salaries will increase significantly, but the tax burden will also increase. Let's find out the details.
There's a wave of good news for central employees. The government is soon going to implement the 8th Pay Commission. When it is implemented, employees' salaries will increase significantly.
However, the tax impact will also increase. Let's find out how much money will come into your pocket and how much will go into taxes after this change.
Suppose you're working at Level 8. Currently, your basic salary is 47,600. After the 8th Pay Commission, a fitment factor of 1.92 will be applied. This means your new basic salary will increase to 91,392.
Your allowances will also increase along with the new basic salary. If you work in Delhi, Mumbai, or Bengaluru, you'll receive 30% HRA, or 30% of ₹91,392, or ₹27,418. Additionally, you'll receive approximately ₹3,600 as travel allowance (TA).
According to reports, after adding all these, your gross salary will reach ₹1,22,410 per month. This means your total salary could increase by approximately ₹75,000 per month.
While the gross salary may be ₹1.22 lakh, there are some deductions. These include the National Pension Scheme (NPS) of approximately ₹9,139, the Central Government Health Scheme (CGHS) of ₹650, and income tax of approximately ₹7,700 (as per tax slab). After these deductions, your net in-hand salary will be approximately ₹104,900 per month.
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