Salary Calculation Formula:
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The 7th Pay Commission introduced a new pay matrix system for government employees in India, replacing the traditional pay band and grade pay system. The matrix has 18 levels corresponding to different positions and 40 index points (stages) within each level for annual increments.
The salary is calculated using the formula:
Where:
Basic Pay: The foundation of salary calculation, determined by pay level and index in the pay matrix.
Dearness Allowance (DA): Adjusted periodically to account for inflation.
House Rent Allowance (HRA): Varies based on city classification (X, Y, or Z).
Transport Allowance: Fixed amount depending on pay level and city.
Other Allowances: May include special duty allowance, medical allowance, etc.
Steps: Select your pay level (1-18), pay index (1-40), enter current DA percentage, HRA percentage based on your city classification, transport allowance, and any other allowances. The calculator will compute your total salary.
Q1: How do I know my pay level and index?
A: Your pay level corresponds to your position/grade pay, and index is determined by your years of service in that level.
Q2: What are the current DA and HRA rates?
A: DA is revised quarterly (check latest notifications). HRA is typically 27%, 18%, or 9% for X, Y, and Z cities respectively.
Q3: Is transport allowance same for all employees?
A: No, it varies by pay level and city classification (higher for metro cities).
Q4: How often does the pay index increase?
A: Normally annually, but this may vary based on government rules.
Q5: Are there deductions from this salary?
A: Yes, standard deductions include NPS contribution, income tax, professional tax, etc.