1. What is the 7th Pay Commission?

The 7th Central Pay Commission (CPC) was constituted by the Government of India to review and recommend changes to the salary structure of central government employees. The recommendations were implemented from January 1, 2016.

2. How Does the Calculator Work?

The calculator uses the 7th CPC formula:

Where:

• Pay in Pay Band — Current basic pay in the pay band (₹)
• Grade Pay — Current grade pay (₹)
• DA — Dearness Allowance percentage (currently 46%)
• HRA — House Rent Allowance percentage (varies by city, typically 27%)
• Allowances — Other fixed allowances (₹)

3. Components of Salary Calculation

New Basic Pay: Calculated by multiplying the sum of Pay in Pay Band and Grade Pay by 2.57 (fitment factor).
DA: Dearness Allowance is calculated as a percentage of the new basic pay.
HRA: House Rent Allowance varies by city classification (X, Y, or Z).
Allowances: Includes Transport Allowance, Medical Allowance, etc.

4. Using the Calculator

Tips: Enter your current Pay in Pay Band and Grade Pay in INR. The calculator uses default values for DA (46%) and HRA (27%), but you can adjust these as needed. Include any additional allowances in the allowances field.

5. Frequently Asked Questions (FAQ)

Q1: What is the fitment factor of 2.57?
A: The 7th CPC recommended a uniform fitment factor of 2.57 to multiply the existing basic pay (Pay in Pay Band + Grade Pay) to arrive at the new basic pay.

Q2: Is DA the same for all employees?
A: Yes, DA is uniform across all employees and is revised quarterly based on inflation indices.

Q3: How is HRA determined?
A: HRA depends on the city classification (X: 27%, Y: 18%, Z: 9% of basic pay). The calculator uses 27% by default.

Q4: Are allowances included in the basic pay?
A: No, allowances are separate components added to the basic pay to calculate the total salary.

Q5: When is the next pay commission expected?
A: Pay commissions are typically constituted every 10 years, so the 8th Pay Commission is expected around 2026.