7th Pay Commission: 4 easy steps to calculate your new salary

Separate pay matrices have been drawn up for civilians, defence personnel, military nursing staff.

The allowances and the HRA have been revised as per the 7th Pay Commission. Government employees will start getting revised salaries starting this month.

There are still many issues relating to the disbursement of arrears and allowances. As far as the salary structure is concerned, the present system of Pay Bands and Grade Pay has been dispensed and a new Pay Matrix is introduced. Here is a guide on how you should calculate your salary.

Pay matrices

Separate pay matrices have been drawn up for civilians, defence personnel, military nursing staff. The 7th Pay Commission introduced the index of rationalisation. This means the minimum pay has been enhanced Rs 7000 to 18000 per month and the starting salary of a newly recruited employee at lowest level is now Rs 18000 whereas for a newly recruited Class I officer, it is Rs 56100.

How to calculate your salary?

The salaries are obtained by multiplying the existing basic pay by a factor of 2.57 and the figure so arrived will be added to all the applicable allowances such as Transport Allowance (TA), House Rent Allowance (HRA), Medical Allowance, etc.

4 steps to calculate your new salary

• Basic pay of an employee as on 1st January 2016 is Rs 20,000
• Multiply basic pay by 2.57 fitment factor = Rs 20,000 x 2.57 = Rs. 51,400
• Addition of TA, HRA, medical Allowances as applicable and according to the revised rates of allowances approved by the Government etc to the amount Rs 51,400
• New Pay = (Basic pay (as on 1st Jan 2016) x 2.57)+ All Allowances as per to the revised rates by the Government



Cabinet decision

On June 29, the Cabinet approved the 7th Pay Commission recommendations. The pay panel had suggested many changes in the allowance structure which were not taken kindly by the central government employees. The pay panel suggested abolishing 52 allowances out of a total of 196 allowances and subsuming 36 others under other allowances. The pay panel also recommended slashing House Rent Allowances from 30 per cent, 20 per cent and 10 per cent for Class X, Y and Z cities respectively to 24 per cent, 16 per cent and 8 per cent.

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