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 Salary is Calculated

The calculator uses the following formula:

Where:

• Pay in Pay Band — Your current basic pay in the pay band
• Grade Pay — The grade pay corresponding to your pay level
• 2.57 — Multiplication factor recommended by 7th CPC
• DA — Dearness Allowance (percentage of new basic pay)
• HRA — House Rent Allowance (percentage of new basic pay)
• Allowances — Other special allowances

3. Components of Salary

New Basic Pay: The revised basic pay after applying the 2.57 multiplication factor.
Dearness Allowance (DA): Currently 17% (as of 2023) to compensate for inflation.
House Rent Allowance (HRA): Varies by city classification (X, Y, Z). Default is 8% for Kerala.
Other Allowances: Includes transport allowance, medical allowance, etc.

4. Using the Calculator

Instructions: Enter your current Pay in Pay Band and Grade Pay. The calculator will compute your new basic pay and total salary including allowances. Default DA (17%) and HRA (8%) values are pre-filled but can be modified.

5. Frequently Asked Questions (FAQ)

Q1: What is the 2.57 multiplication factor?
A: This factor was recommended by the 7th CPC to convert pre-revised pay (6th CPC) to revised pay (7th CPC).

Q2: How often is DA revised?
A: DA is revised twice a year (January and July) based on inflation indices.

Q3: What HRA rate applies in Kerala?
A: Most areas in Kerala fall under the 'Z' category with 8% HRA. Some cities may have higher rates.

Q4: Are all allowances multiplied by 2.57?
A: No, only basic pay is multiplied. Allowances are calculated as percentages of the new basic pay.

Q5: When was the 7th CPC implemented in Kerala?
A: Kerala state government implemented the 7th CPC recommendations with effect from July 1, 2019.