7th Pay Commission: Here is how to calculate new salary

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The 7th Pay Commission will benefit 1 crore government employees. With the implementation just round the corner and the Cabinet set to clear both higher allowances and HRA by June 28.

7th Pay Commission: Here is how to calculate new salary

As per the pay commission, the current system of Pay Bands and Grade Pay have been dispensed. A new Pay Matrix has been introduced as well. Separate Pay Matrices have also been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The commission also introduced index of rationalisation for arriving at minimum pay in each Level of the Pay Matrix, depending upon the increasing role, responsibility and accountability at each step in the hierarchy.

The commission also enhanced the minimum pay from Rs 7,000 to Rs 18,000 per month. The starting salary of a newly-recruited employee at lowest level is now Rs 18,000 whereas for a newly-recruited Class I officer, it is Rs 56,100.

Here is how you can calculate your salary as per the 7th Pay Commission:

  • If your basic pay as of January 1 2016 is Rs 10,000
  • Multiply the basic pay by 2.57 fitment factor.
  • Rs 10,000 into 2.57 equals to RS 25,700
  • Addition of TA, HRA, medical Allowance as applicable to the amount Rs. 25,700
  • New Pay = (Basic pay (as on 1st Jan 2016) x 2.57)+ All Allowances

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