7th Pay Commission Calculator for Pay and Arrears: Once every decade, a pay commission is set up by the central government to restructure the pay structure of its employees by forming a pay commission. In addition to updating the salary structure, each pay commission has a term of reference (ToR), which broadly illustrates its focus. Pay commissions also decide pension salaries. The ToR of the 7th Pay Commission stated that wages would be revised, keeping in mind “simplification” and “rationalisation” of pay structures and “specific needs of multiple departments”. The pay commission set up by the Govt. of India is to restructure and revise the pay of 48 lakh employees and 55 lakh pension earners. This article explains how to calculate Pay and Arrears as per the 7th Pay Commission. It also presents the 7th Pay Commission Calculator for Pay and Arrears.
Highlights for 7th Pay Commission
- According to the pay new structure, the existing basic pay as of December 31 2015, is multiplied by a factor of 2.57.
- Earlier, the employees had to wait for 19 months to implement the Commission’s recommendations at the time of 5th CPC and 32 months at the time of implementation of 6th CPC. However, this time, the 7th CPC proposals are being completed within six months from the due date.
- After taking into account the DA at the current rate (125 percent of basic pay), the salary/pension of all government employees/pensioners will be increased by at least 14.29 percent as on 01.01.2016
- The 7th pay commission expels the existing grade pay system and the pay bands, thereby introducing a new matrix-based pay system, as prescribed by the commission. There are separate matrices for civilians, military nursing and defence personnel. The principle and rationale behind these matrices are equivalent.
- The financial repercussions of accepting the Seventh Pay commission’s recommendations in 2016-17 will amount to Rs.1.02 trillion. There will be a supplementary indication of Rs. 12,133 crore for pension payments and arrears payments for the year 2015-16. Out of the total basket of Rs 102100 Crore, the majority, i.e., Rs 73650, will be from the Yearly budget and the rest from the railway budget
7th Pay Commission Salary Calculator
After the declaration of Dearness Allowance (DA) restoration for fifty-two lakh central government employees, central government servants (CGS) are busy evaluating how it will transform their 7th pay commission matrix. The reason for CGS’s 7th CPC salary calculation is due to the alteration taking place in their 7th CPC pay matrix. On July 25, 2016, the Finance Ministry announced the salary hike based on Seventh Pay Commission recommendations. From Aug 2016, about 1 crore employees and pensioners profited from the pay hike. To add to their salary for the month of August, the government decided to add the arrears for a period of seven months.
Calculation of Pay Under 7th CPC Commission
The 7th Pay commission simplified the calculation for succeeding revised pay through the new 7th CPC Pay Matrix. The following step by step will enumerate the process of calculating the revised pay, the allowances and the arrears under the 7th pay commission. Below are the six steps :
- Step-I: Calculate your sixth CPC basic Pay.
- Step-II: Multiplication of the output from Step-I with the Fitment factor of 2.57 as per the 7th CPC ( rounding off to the nearest rupee)
- Step-III: Match the Answer with Matrix Table. If there is no matching figure in the Pay matrix, take the closest higher figure assigned in the Grade Pay column.
- Step-IV: Find your HRA (House Rent Allowance). From 24%, 16% and 8% for 30%, 20% and 10% , HRA has been revised respectively.
- Step-V: Find your TPTA (Transport Allowance). There are provisions for transport allowance in two kinds of places and for three employee categories. People residing in A1 and A city classifications are eligible to receive higher TPTA rates.
- Step-VI: Add all the figures, and you will receive your updated 7th CPC Grass pay.
Arrears Received Under the 7th Pay Commission
The arrears were paid during the Financial Year 2016-2017 along with Aug 2016 salary. To calculate the Arrears, we have to find
- The sum of the dearness allowance and the pay that one is entitled to receive due to the pay revision under the enforcement of new rules for the period starting from the 1st day of Jan 2016.
- The sum of the pay and dearness allowance to which he would have been entitled to that period had his pay and allowances not been so revised.
Pay Matrix of 7th Pay Commission for Civilians
The seventh pay commission got discarded of the pay grade and used a pay matrix to fix pay. “Pay Matrix” means Matrix with Levels of payment regulated in vertical cells assigned to equal existing Pay Band and Grade Pay or scale. This pay band guarantees that there are no unbalanced jumps in salaries when one gets promoted, as was the case with the six CPC pay scales. For example, if you are a level 11 employee at table 16 earning Rs 70,000 per month, upon being promoted to level 12, you will earn Rs 86,600 and not the entry pay of level 11.
- There are a total of 18 levels of promotions that an entry-level employee can go through.
- In the Pay Matrix “Level” indicates the Level corresponding to the present Pay Band and Grade Pay.
- There is an index for the number of years one has served in the government within these levels.
- These indexes decrease as one goes up the hierarchy. A cabinet secretary is at level 18, the highest possible, with Rs 2,50,000 salary a month. They will not receive the 3% annual profit.
7th Pay Commission and HRA
As per the 6th CPC, the HRA percentages were prescribed on basic pay according to the cities in India. The cities were classified as X, Y and Z, and the percentage rates for the cities are 30%, 20% and 10% on basic pay. Under the 6th pay commission, the house rent allowance has been revised and rationalised to different brackets for all central government employees. These brackets are 16 percent for class Y, 24 percent for class X, and 8 percent for Class Z cities. The rate of HRA was revised to 27, 18 and 9 percent when DA passes 50 percent, and further revised to 30, 20 and 10 percent when DA crosses 100 percent.
The 7th CPC Transport Allowance for three Category of Employees are of Two Types of Places:
If you are residing in A1 and A classified cities, you will be allowed higher TPTA rates. The Division of A1/A has been terminated for other purposes but held for Transport Allowance. There are 19 cities rated as A1/A
- 6 in A1 are Delhi, Bengaluru, Hyderabad, Greater Mumbai, Chennai, Kolkata, and 7 in A are Ahmedabad, Surat, Nag Pune, Jaipur, Lucknow and Kanpur.
- Recently, six more cities have been added to A1/A categories, making it nineteen in all – Patna, Kozhikode, Indore, Kochi, Coimbatore and Ghaziabad.
7th Pay Commission and Employees
A spate of analyses has been circling how helpful the 7th Pay Commission mandated pay hikes. As approved by the Union Government with reflective effect, the 7th pay commission has benefited the economy.
- Unlike the private sector, where the payment is updated annually depending on the production and skills, government employees have to typically pause for a decade for any extraordinary revision in their wages if one sets down the 3 per cent routine annual pay increase.
- The cost of living and food prices have increased since the 6th pay commission.
- State government and Central Government workers are the ones who get a pension, and each time the payment of serving employees is increased, a pensioner’s pension is also increased.
- There are also other post-retirement facilities like health care.
Conclusion On 7th Pay Commission Calculator for Pay and Arrears
The 7th pay commission served as a breath of fresh air to government employees and pensioners across India. It brought in the necessary amendments in the pay structure of Government employees, which was long overdue. Through this article, one is expected to understand the calculation of the 7th CPC pay and arrears calculation and also a compact understanding of the overall 7th pay commission and its elements.