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6th Pay Commission Formula:
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The 6th Pay Commission introduced a new pay structure for government employees in India, which included a multiplication factor of 1.86 for fixing the new basic pay from the sum of pay in the pay band and grade pay.
The calculator uses the 6th Pay Commission formula:
Where:
Explanation: The formula uniformly applies the 1.86 multiplication factor to the sum of pay in pay band and grade pay to arrive at the new basic pay.
Details: Correct pay fixation is crucial for determining the new salary structure, allowances, and subsequent benefits like pension. It ensures employees receive their rightful compensation as per the revised pay scales.
Tips: Enter the current pay in pay band and grade pay in Indian Rupees. Both values must be positive numbers. The calculator will automatically compute the new basic pay after fixation.
Q1: Why is the multiplication factor 1.86?
A: The 1.86 factor was recommended by the 6th Pay Commission to maintain parity between pre-revised and revised pay scales while accounting for inflation and other economic factors.
Q2: Does this include all components of salary?
A: No, this calculates only the new basic pay. Other allowances (DA, HRA, etc.) are calculated separately based on this new basic pay.
Q3: Is this applicable to all government employees?
A: The 6th Pay Commission recommendations applied to central government employees. State governments adopted it with possible modifications.
Q4: How does this differ from 7th Pay Commission?
A: The 7th Pay Commission uses a different formula with a multiplication factor of 2.57 and doesn't use the concept of grade pay.
Q5: What if my pay fixation falls between two stages?
A: The calculated amount is rounded up to the next higher stage in the pay matrix as per government rules.