If you are a government employee and had a salary increment under the 7th pay commission and are unsure what the increment amount is, you have ended up at the correct place.
Read on to know how to calculate increment in 7th pay commission.
The Pay Commission got set up to suggest feasible economic changes in central government employees’ payment structure.
If you are a government employee and had a salary increment under the 7th pay commission and are unsure what the increment amount is, you have ended up at the correct place.
Read on to know how to calculate increment in 7th pay commission.
Updates on 7th pay commission
More than 23 lakh pensioners to get the benefit of up to Rs. 18,000
The government revised the pension limits for teaching and non-teaching staff of central and state universities on recommendations from the seventh pay commission. This decision of the government will benefit 25,000 pensioners of all universities. The decision will also benefit 15 lakh non-teaching retired staff from the state, public, and affiliated universities.
HRA structure has impacted inflation
The increase in HRA for employees of the central government has impacted the Consumer Price Index (CPI) by nearly 35 basis points at its peak, as per the research paper by the Reserve Bank of India’s department on monetary policy.
Benefit for railways employee under the 7th pay commission
The railway employees can now avail themselves of Leave Travel Concession (LCT) for the first time. Government employees working in the Indian Railways and their spouses are now entitled to LTC as the facility of “Free Pass” is now available to them.
How to calculate increment in 7th pay commission?
To calculate the salary and increment in the new structure of the 7th pay commission, you have the option to use one of many 7th pay commission calculators, which suggests that the salary or pay package can get computed in the following manner:
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Step 1 – Enter the basic pay along with your pay band and grade pay.
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Step 2 – Select your transport allowance, location, along the percentage of your current house rent allowance.
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Step 3 – Hit on the “calculate” button, and it will calculate the result of your revised salary structure that complies with the 7th pay commission recommendations.
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Step 4 – Reduce your new salary figure with your past salary figure. You will have the increment amount by doing this.
The changes in salary figures of the central government employees as per the recommendation of the 7th pay commission came into effect in August 2018. The revised salaries, remunerations, and allowances took effect from the previous month of changes coming into effect, i.e. July 2018.
Recommendations of 7th pay commission
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New pay structure
The new pay structure as by the 7th pay commission consists of all the existing levels in the pay matrix, and the commission has not introduced any new levels or hierarchy.
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The minimum pay for government employees
As per the 7th pay commission, the minimum pay is now revised to Rs. 18,000 per month for a new government recruit at an entry-level. The minimum salary amount stands at Rs. 56,100 per month for a newly recruited Class I officer.
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Pay matrix
The previous system of Grade Pay will not decide the government employee’s salary once the 7th pay commission gets implemented. The salary will get determined as per the level in the new Pay Matrix.
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Maximum payment for government employees
It is recommended by the 7th pay commission to increase the maximum pay for government employees to Rs. 2.5lakhs. This revision gets recommended for the apex scale-like cabinet secretaries and others at the same scale or level.
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Military service pay
The military service pay will now be admissible to only Defence forces personnel, unlike earlier when it was payable to all ranks, including Brigadiers and their equivalents. Military service pay is compensation for military service, and the 7th pay commission has recommended enhancing MSP for various categories.
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Advance
Both non-interest and other interest-bearing advances except Personal computer advance and House Building Advance are abolished in 7th pay commission. Additionally, the House Building Advance ceiling now gets revised to Rs25 lakhs from its earlier amount of Rs.7.5 lakhs.
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Pay based on performance
The 7th pay commission has recommended introducing the performance-related pay to subsume the existing bonus scheme for all categories of employees of the Central Government.
To Conclude –
The 7th pay commission has brought in a lot of reforms that are beneficial for both the government and the central government employees. Visit getlegalindia.com to know more about Minimum wages in India or if you have any queries about the 7th pay commission and understand its impact on your pay structure.
