Pay Scale-What is Pay Scale? How to Calculate Pay Scale?

The Main Question is What is Pay Scale? How to Calculate Pay Scale?

Government employees’ gross salary is sum of different components.

1. Basic Pay
2. Grade Pay
3. Dearness Allowance
4. House Rent Allowance
5. Other miscellaneous allowances

-Basic pay is written in format:

  • Number1 – percent – number2 (Rs 5200-3%-20200/-)
  • Number1 – It is the basic pay at which your salary is calculated when you are appointed.
  • Number2 – It is the maximum basic pay a person can receive in a designated post.
  • Percent (3%) – To compensate for inflation, an increment is added to your basic pay after a fixed period. This increment is in percent of your current basic pay and the fixed period is usually a year.
  • Grade Pay(Rs 1800/- or whatever it is) : Apart from basic pay, government employees receive grade pay which depends on the category/class of employee.

Pay Scale-What is Pay Scale? How to Calculate Pay Scale?

The sum of basic pay and grade pay is used to calculate dearness allowance and other allowances.

The Dearness Allowance(DA) is a cost of living adjustment to allowance. It is calculated as a percentage of (Basic pay + grade pay). Dearness allowance is updated every quarter of calendar year to compensate for inflation in consumer price index. It may increase or decrease depending on inflation rate. (Decrease in DA is rare).

House rental allowance(HRA) is allowance paid for house rent. It depends city to city. Cities are classified as X, Y and Z, on the basis of their population, as recommended by Sixth Central Pay Commission in 2008. HRA is also used by the Indian Revenue Service(IRS) to provide income tax exemptions.

Miscellaneous allowance(MA) includes phone allowance, shift allowance, travel allowance etc.

Like DA all allowances are calculated on (Basic pay + Grade pay).

Now coming to the main question,
Basic pay = 5200-3%-20200
Grade pay =1800

It means your salary will be calculated as
(Basic + grade pay)+DA+HRA+MA

Presently, DA is around 110%, HRA may vary from 10% to 30% and MA can vary widely.
Here I’m assuming DA=110% HRA=20% MA=40%

Gross monthly salary
= (5200+1800)+(7000*1.10)+(7000*0.2)+(7000*0.4)
= 18900

pay scale

Your net salary (that is your in hand salary) will be a little less due to PPF and other deductions. It is about 15-20% roughly. So net salary will be around Rs.16000 per month.

This salary will change after every three months due to change in DA.

After 1year service, your basic pay will be 5200*1.03 = Rs.5356. This increase in basic pay will continue every year till it reaches 20200 limit. But most likely you will be promoted to higher designation within first 4 years of service. And this cycle will continue with different basic pay limits.

Though Basic pay changes after every promotion, Grade pay may or may not change with change in designation.

This Post is Only for Basic Information .For the Purpose of Clear the concept of Pay Scale in Government Sector. 

7th Pay Commission: Good News for Current and Ex-Servicemen of Central Government 

Here is a good news for all current and ex-servicemen of central government for their 7th pay commission. DA that is Dearness Allowance will be increased in June, 2021. 

JCM employee Mr. Shiv Gopal Mishra has given this information recently and specified the increase in 4% of DA. The official announcement for the increase will be given in June by the central government. The basic salary of the central government employees and pensioners will get a hike.

As per the sources, the DA which generally increased in April has been extended to June. But, as central government has freezed the DA and DR of the employees till June 2021, hence there will be no effect of 7th pay on the CPC of employees and pensioners.  

How DA will be increased after the announcement of 7th pay commission?

After the official announcement of increase by the central government, the calculation tells that 4 % increase will be given to the employees. The calculation is based on the increase in inflation of 3.5% from 2020 to 2021.

Therefore, you can get an extreme advantage soon. The effect of the increase will be seen in the salary of employees from July. 

Pending Installments of DA:

As per the statement of Mr. Shiv Gopal Mishra, the calculation of pending installments is going on. They are also offering the government that if they are not capable of giving the pending installments together then they can distribute the same in parts.

The hike will be given to almost 1.5 crore employees under central government in different fields. The increase in the DA varies between Rs. 105 to Rs. 210 approximately. 

What all departments are included in the list?

  • Railway Administration 
  • Oil Fields
  • CLC – Chief Labour Commissioner Central
  • Contractual and non-contractual employees
  • And many more employees in central government

What is 7th Pay Commission?

There are many people who have seen the news of increase in 7th pay commission, but they are confused or have less knowledge about the same. So, here are some brief information about the same. 

7th CPC: The salary of a central government employee is divided into 3 parts: basic salaries, deductibles, and the allowances. In 2014, the structures and principles with the increase in emoluments were finalized by the central government and a detailed report was submitted by in 2015, 19th November.

In this, the Dearness Allowances of employees is increased and yearly commissions are given on 1st April, every year. But, this time due to covid crises the allowances were delayed and now tentative receiving date is in July, 2021.

DA: Dearness allowance are the commissions given to the employees of central government, public sector employees, or to pensioners. It is calculated by the basic salary or pension received by the employee and directly impacts on the inflation (increase) in salary or pensions of the employee. 

Apart from this, many other advantages are given to employees like TA= Travel Allowances, Health Insurance, Life Insurance and many more.

Rules Followed for the Calculation of DA:

  • Minimum Value Calculation from Primary Slab
  • Non-Slab Estimation
  • Primary Slab Estimation
  • CPI Slab
  • Incremental Slab
  • Increment CPI Slab

Primary Benefits of DA:

  1. Over 1.5 crore people gets benefit from hike in dearness allowance. Among 1.5 crore, approximately 50 lakh people are from current designations at every level in central government and 65 lakh people are pensioners. Any increase in dearness allowance will directly help to increase the monthly payout of all the clients. 
  2. Specially for the old-aged pensioners who have no other income source will get a relief in tough time.

DA increase has impact on all the employees in one way or the other. For more updates we will be notifying your shortly.

7th Pay Commission: Enjoy the Increase

After the tentative announcement of hike in DA now all the employees are busy in calculating the commission they are going to receive in near July. It will be a relaxation moment for everyone while fighting the cut-offs in salary due to covid crisis. 

Now, we have to wait up to next month. The official announcement will be done in June and then employees will get a clarity on the increase and receiving of installments. Keep Visiting to know more about 7th pay commission. 

Reference :- and Yahoo Answer

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