7th Pay commission simplified the calculation for arriving revised Pay through new 7th CPC Pay Matrix. We show the method through easy 6 Steps to calculate  New Pay, Allowances and Arrears under 7th CPC.

• Step-I Calculate your sixth CPC basic Pay 
  • Ex:   ( Grade Pay + Band Pay)   = 4200+12110= 16310
• Step-II Multiply the answer in Step-I with 7th CPC Fitment Formula 2.57.  ( Paisa to be rounded off to the nearest Rupee)
  • Ex: 16310 x 2.57 = 41916.70 = Rs 41917
• Step-III Match this Answer with Matrix Table ( Given Below). if there is no matching figure in the Pay matrix, choose the closest higher figure assigned in the Grade Pay column
  • Figures assigned in Grade Pay column Rs.4200. There is no matching figure we arrived above in this matrix, so the closest higher figure assigned in the Grade Pay column can be chosen ie is Rs. 42300. So , Rs 42300 is your New 7th CPC Basic Pay.

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    How to Calculate Pay as per 7 CPC commission
• Step-IV : Find your HRA . HRA has been revised as 24%, 16% and 8% for 30% , 20% and 10% respectively So if you are in 30% HRA Bracket, your HRA in 7th CPC is 24% .
  • Ex:  HRA= Find the 24% of the Basic Pay  =   42300 x 24/100 = 10152
• Step-V: Find your TPTA (Transport Allowance). 7th CPC Recommends Transport Allowance for three Category of Employees for Two Types of Places. If you are living in A1 and A classified cities (See the List of 19 cities classified as A1 and A cities) you will be entitled to get higher TPTA rates
  • Ex: Since your Grade Pay is 4200 you fall in Second category. ie Grade Pay 2000 to 4800 i.e Rs 3600+DA. As DA is Nil as on 1.1.2016 Your TPTA is Rs. 3600.
• Step-VI : Add all the figures. As DA will be Zero from 1.1.2016 So no need to calculate the DA to calculate 7th Pay and Allowances from 1.1.2016. New Basic Pay + HRA+TPTA = 42300+10152+3600 = 56052. Your revised 7th CPC Grass pay as on 1.1.2016  =  Rs.56052

How much Arrears will one get under 7th Pay Commission

The arrears shall be paid during the Financial Year 2016-2017 along with Aug 2016 salary.  Questions is How to calculate Arrears. Arrears of pay means the difference between:

• (i) the sum of the pay and dearness allowance to which he is entitled on account of the revision of his pay under these rules for the period effective from the 1st day of January, 2016
• (ii)the sum of the pay and dearness allowance to which he would have been entitled (whether such pay and dearness allowance had been received or not) for that period had his pay and allowances not been so revised.

7th Pay Commission Calculator for Pay and Arrears

7th Pay Commission Pay and Arrears Calculator 2016
Basic Pay as on 1.1.2016
Grade Pay as on 1.1.2016
Select Your Pay Band and Grade Pay	SelectPB-1 (5200 – 20200) GP 1800PB-1 (5200 – 20200) GP 1900PB-1 (5200 – 20200) GP 2000PB-1 (5200 – 20200) GP 2400PB-1 (5200 – 20200) GP 2800PB-2 (9300 – 34800) GP 4200PB-2 (9300 – 34800) GP 4600PB-2 (9300 – 34800) GP 4800PB-2 (9300 – 34800) GP 5400PB-3 (15600 – 39100) GP 5400PB-3 (15600 – 39100) GP 6600PB-3 (15600 – 39100) GP 7600PB-4 (37400 – 67000) GP 8700PB-4 (37400 – 67000) GP 8900PB-4 (37400 – 67000) GP 1000067000 – 79000 : No GP75500 – 80000 : No GP80000 : No GP90000 : No GP
Select Your Transport Allowance	SelectNo TA40060080016003200
Select Your House Rent Allowance	SelectNo HRA10%20%30%
Select Your City Details given below*	SelectNo TAHigher TPTA CitiesOther Places
Non Practicing Allowance	NoYes
Note*: 7th CPC refers 19 Cities as Higher TPTA Cities: Delhi, Hyderabad, Bengaluru, Greater Mumbai, Chennai, Kolkata, Ahmedabad, Surat, Nagpur, Pune, Jaipur, Lucknow, Kanpur, Patna, Kochi, Kozhikode, Indore, Coimbatore and Ghaziabad

Pay Matrix of 7th Pay Commission for Civilians

HRA and 7th Pay Commission

As per 6th CPC the percentages on HRA were prescribed on basic pay according to the cities in India. The cities are classified as X, Y and Z and the rates of percentage respect of the cities are 30%, 20% and 10% on basic pay (Grade pay including). The 7th Central Pay Commission has recommended

• to reduce the percentage of House Rent Allowance for all categories of Central Government employees rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.
• rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, 
• and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.
• For Classification of cities as X,Y and Z please check our article 7th Pay Commission : Understanding Seventh Pay Commission or the image Classification of cities as X,Y and Z

Population of City			DA above
	Present	7th Pay	50%	100%
Above 50 lakh (Class X)	30%	24%	27%	30%
5 lakh to 50 lakh (Class Y)	20%	16%	18%	20%
Below 5 lakh (Class Z)	10%	8%	9%	10%

Transport Allowance and 7th Pay Commission

Classification of A1/A has been abolished for other purposes (like HRA, CCA) but retained for Transport Allowance. There are total 19 cities classified as A1/A

• 6 in A1, which are Hyderabad, Delhi, Bengaluru, Greater Mumbai, Chennai, Kolkata and
• 7 in A, which are, Ahmedabad, Surat, Nagpur, Pune, Jaipur, Lucknow and Kanpur.
• Recently, 6 more cities, viz., Patna, Kochi, Kozhikode, Indore, Coimbatore and Ghaziabad have been added to A1/A categories, making it nineteen in all.

Nonpracticing Allowance (NPA) and 7th Pay Commission

In the case of medical officers in respect of whom Non Practicing Allowance (NPA) is admissible, the pay in the revised pay structure shall be fixed in the following manner : (i) the existing basic pay shall be multiplied by a factor of 2.57 and the figure so arrived at shall be added to by an amount equivalent to Dearness Allowance on the pre-revised Non-Practicing Allowance admissible as on 1st day of January, 2006.

The figure so arrived at will be located in that Level in the Pay Matrix and if such an identical figure corresponds to any Cell in the applicable Level of the Pay Matrix, the same shall be the pay, and if no such Cell is available in the applicable Level, the pay shall be fixed at the immediate next higher Cell in that applicable Level of the Pay Matrix. (ii) The pay so fixed under sub-clause (i) shall be added by the pre-revised Non Practicing Allowance admissible on the existing basic pay until further decision on the revised rates of Non Practicing Allowance

 Are Government Employees Happy with 7th Pay Commission

There has been a spate of commentaries about how beneficial the 7th Pay Commission mandated pay hikes, and now approved by the Union Government with retrospective effect will benefit the economy. Others have cheered this with comments like “you pay peanuts you get monkeys!” But No government employee is really celebrating the 7th pay commission hike. There were threats of going on strike in Jul but that never materialised. Finance Minister Arun Jaitley claimed that the recent implementation on 7th CPC made by the government will match the salaries of government employees that to the private sector. Quoting from an IIM-Ahmedabad study he said it “found that pay in the government sector is distinctly greater than that in the private sector so there can’t be protests from employees.” He was basically comparing the salaries of class IV and III employees in government and private sector.

• Unlike the private sector, where the compensation is revised annually depending on the performance and skills, government employees have to typically wait for a decade for any substantial revision in their wages, if one sets aside the 3 percent routine annual pay increase.
• The cost of living and prices of food items have gone up so much since the sixth pay commission.
• Often, even the well performing bureaucrats feel that there is no value for their work, beyond the element of mental satisfaction, since the reward is same for the performers, laggards, sleepy heads and those who take a detour during their morning walks to office only to punch in their attendance and later return post lunch.
• Central and state government employees are the ones who get pension and each time pay of serving employees is hiked, a pensioner’s pension is also hiked. They also have other post-retirement facilities like health care. The number of pensioners (53 lakh) is higher than number of serving employees (47 lakh). A middle ranking government employee on his retirement said, “Sarkari naukar jinda toh lakh ka mara to sava lakh ka”(A retired man worth more than a serving one).”

The Government knew that after a pay and pension hike would be announced, unionists will cry hoarse of injustice committed on them, some others would want anomalies to be rectified and parity be restored. To remedy that, the Union Cabinet has set up four committees:

• first to look into the implementation issues anticipated;
• second will go into the likely anomalies;
• third committee to examine the recommendations on allowances, which have largely been kept on hold and
• fourth to suggest measures for streamlining the National Pension System.

IIM-Ahmedabad study on Salary Comparison

Commissioned by the Seventh Pay Commission, IIM-Ahmedabad conducted the ‘Salary Comparison Study’ in October 2015 examinining 40 professions, including nurses, teachers, scientists, electricians, drivers and clerks. It found the salaries of gardeners, clerks, receptionists and drivers lower in the private sector.  Experts are broadly in agreement with the findings of the IIM-Ahmedabad study. But it’s not all black and white.

For example, a driver in the private sector typically earns around Rs. 12,000 a month, while an entry-level driver in government service earns around Rs. 25,000, including additional benefits and allowances. Even qualified professionals working with the government at the entry level are paid more.Government doctors with an MBBS degree get Rs. 80,500 a month while their counterparts in the private sector are paid only Rs. 50,000.

The study also found wide variations in salaries within the private sector, primarily because of the size of organisations, location, and profitability status. For example, in private schools where the recommendations of the Sixth Central Pay Commission are followed, the salaries are comparable to government sector, but in other schools the payments are lower.

	Central Government	Private Sector	SEBI Listed
C- Grade employee	Rs 18,000	Rs 20,000-25,000	Rs 30,000-35,000
B- Grade employee	Rs 25,000	Rs 50,000-65,000	Rs 75,000-1.25 lakh
A- Grade employee	Rs 40,000 to Rs 45,000	Rs 1.5 lakh-2.54 lakh	Rs 3.5 lakh-5 lakh
Class 1 employee	Rs 56,100	Rs 3 lakh-5 lakh	Rs 8 lakh-10 lakh
Cabinet Secretary or CEO	Rs 2.5 lakh	Rs 15 lakh-25 lakh	Rs 1 crore to Rs 3 crore
MBBS Doctor(entry level)	80,500	50,000
MBBS Doctor(15 years)	1,30,000	1,05,000
MD Doctor (Entry Level)	95,000	1,05,000
MD Doctor(15 years)	1,60,000	3,70,000

Yes, if compared with a private sector CEO’s salary which ranges between Rs 12.5 lakh and Rs 2.5 crore per month — according to data available with HR consulting firm Omam Consultants — the salary of the cabinet secretary seems paltry; the topmost bureaucrat in the country takes home Rs 2.5 lakh per month. But then, you can’t ignore the embellishments — the tangible and non-tangible perks doled out to a government officer.

For example A Central government officer gets accommodation in Lutyens’ Delhi — the market value of the rent of the cabinet secretary’s bungalow on 32 Prithviraj Road, for example, is several times more than his salary.  An officer also gets a car, a driver, phone bill reimbursements, unlimited medical benefits for self and dependents, pension and a whole range of allowances, including one-time book allowance for Indian Foreign Service officers, and then a secret allowance -an undisclosed amount paid to officers working in the cabinet secretariat for dealing with top secret papers and performing sensitive duties.

In fact, many of the 196 allowances that exist in the government were not known publicly till Justice (retired) AK Mathur-headed pay panel placed each one of those in public domain and recommended the abolition of 52 such allowances,

Demand for Govt. jobs?

The Uttar Pradesh government secretariat recently received applications from postgraduates and Ph.D holders in response to a notification of vacancies of peon. Many people choose Government Job due to factors such as job security, work-life balance, a five-day week, post-retirement benefits. In government jobs, the ratio of the top pay to the lowest pay must be within a certain band (12-13:1). No such consideration applies in the private sector. But government jobs are not easy to come by and reservations for SC, ST and OBCs make it seem like a prize that is kept out of the reach of people from general categories.

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