Monthly Salary Calculations: Basic pay is one of the key factors to decide the overall salary of a central government employee.
However, it is not the only factor.
Their overall salary also depends on other factors such as dearness allowance (DA), house rent allowance (HRA), and travel allowance (TA). HRA and TA may differ from city to city.
So, it often happens that employees with the same basic pay staying in different cities get different overall salaries.
In this write-up, know how the salary of a central government employee is calculated, what the different pay scales are in the 7th pay commission, and what the estimated overall salary will be for employees with basic salaries of Rs 25,600, Rs 32,400 (Level 1), Rs 29,600, Rs 47,500 (Level 4), Rs 56,900, Rs 68,000 (Level 8), and Rs 77,700 and Rs 84,900 (Level 10).
What is basic pay for central government employees?
The basic pay is a fixed amount that an employer agrees to pay to an employee. It can be half of the cost to the company, or it can be less than that.
What are other factors to decide central government employee salary?
Apart from the basic salary, the central government employee also gets the DA, HRA, and TA. These are common allowances. Employees may get other allowances also based on their rank.
What is DA for central government employees?
The current DA rate for central government employees is 53 per cent.
DA changes twice a year and is calculated on the basis of the All India Consumer Price Index (AICPA).
It is increased so that the pay of an employee is adjusted to the rising inflation. For state government employees, DA can be different from state to state.
What is minimum and maximum basic pay for 7th Pay Commission?
The minimum basic salary for the 7th Pay Commission is Rs 18,000, while the maximum is Rs 2,50,000.
What are different HRA rates for central government employees?
The HRA is based on the city that the employee is posted in.
Government employees get HRA as part of their salary.
The government has created 3 categories for cities. For each category, the HRA limit is different.
Class X cities- With a population of more than 50 lakh
Class Y cities- With a population between 5 lakh and 50 lakh
Class Z cities- With a population less than 5 lakh
Here, the catch is that in some cities, the rent can be less than the minimum permissible limits, so the minimum HRA should not be less than Rs 5,400 for Class X cities, Rs 3,600 for Class Y cities, and Rs 1,800 for Class Z cities.
Minimum, maximum TA limits for central government employees
The minimum TA limit is Rs 900, while the maximum limit is Rs 15,750.
But if employees get an official vehicle for travel, they may not get it at all.
Calculations for story
We will calculate the estimated total salaries for central government employees with basic salaries of Rs 25,600, Rs 32,400 (Level 1), Rs 29,600, Rs 47,500 (Level 4), Rs 56,900, Rs 68,000 (Level 8), and Rs 77,700 and Rs 84,900 (Level 10). We are taking New Delhi as the city for HRA and TA calculations
Total monthly salary for Rs 25,600 pay band (Level 1)
Basic pay- Rs 25,600
HRA- Rs 6,144
DA- Rs 4,352
TA- Rs 1,580
Total pay- 37,676
Total monthly salary for Rs 32,400 pay band (Level 1)
Basic pay- Rs 32,400
HRA- Rs 7,776
DA- Rs 5,508
TA- Rs 1,580
Total pay- 47,264
Total monthly salary for Rs 29,600 pay band (Level 4)
Basic pay- Rs 29,600
HRA- Rs 7,104
DA- Rs 5,032
TA- Rs 4,212
Total pay- 45,948
Total monthly salary for Rs 47,500 pay band (Level 4)
Basic pay- Rs 47,500
HRA- Rs 11,400
DA- Rs 8,075
TA- Rs 4,212
Total pay- 71,187
Total monthly salary for Rs 56,900 pay band (Level 8)
Basic pay- Rs 56,900
HRA- Rs 13,656
DA- Rs 9,673
TA- Rs 4,212
Total pay- 84,441
Total monthly salary for Rs 68,000 pay band (Level 8)
Basic pay- Rs 68,000
HRA- Rs 16,320
DA- Rs 11,560
TA- Rs 4,212
Total pay- 1,00,092
Total monthly salary for Rs 77,700 pay band (Level 10)
Basic pay- Rs 77,700
HRA- Rs 18,648
DA- Rs 13,209
TA- Rs 8,424
Total pay- 1,17,981
Total monthly salary for Rs 84,900 pay band (Level 10)
Basic pay- Rs 84,900
HRA- Rs 20,376
DA- Rs 14,433
TA- Rs 8,424
Total pay- 1,28,133
