Ways to Calculate the Seventh Pay Commission on Your Own

The implementation of the Seventh Pay Commission will bring about significant hikes in the pay and perks of the Government employees and pensioners alike. It was initiated by the Government to make amendments in the existing salary structure of Central Government employees.

7th Pay Commission

The latest 7th Pay Commission headed by A.K. Mathur agreed for a 23.55% increase in pay and allowances across all sectors and follows and open-ended, layered matrix for civilians and defence personnel alike. This has been done so as to provide equal growth opportunities and better salaries to everyone.

7th Pay Commission Recommendations –

  • Minimum basic salary has now been increased to Rs. 18000 from the earlier Rs. 7000
  • Fitment factor of 3% as annual increment for all employees
  • Hike of 2.57% in in the annual income of Central Government Employees and pensioners
  • Maximum basic salary for top posts such as cabinet secretaries has been fixed at Rs. 2.5 lakhs
  • HRA is expected to rise to 27%, 18%, and 9% depending on the city
  • Implementation of a pay matrix which takes into account the hierarchical level of the employee at work
  • Existing bonus system being replaced by Performance Related Pay across all categories
  • The minimum and maximum scale of defence employees have been fixed at 21,700 and 2.5 lakhs respectively
  • Abolition of 52 allowances while another 32 have been included under an existing allowance
  • Interest-free advances have been abolished except advances for house building advance and for personal computers

How to Calculate

First enter your details such as basic pay, pay band and grade pay. After this choose the transport allowance, location, and the percentage of your current HRA. Once all this has been done, click on the ‘Calculate’ button to get your revised salary.

You can get benefits of tax deductions under section 80C, if you have invested your money in like financial products such as home loans, personal loans, car loans etc.

Hope now you are aware of How to calculate the Seventh Pay Commission.

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