Under 7th Pay Commission, the salary of central employees is divided into three parts. The first part is basic salary, the second part is allowance and the third is deductible.
Ever since it has been announced by the government that the Dearness Allowance is being increased from 17% to 28% from 1 July 2021, central employees and pensioners have been taking into account the impact it will have on their salary and pension. Will happen. In this article, you will give detailed information about the calculation and matrix of salary under the 7th Pay Commission. With its help, you can find out the salary of any government babu.
Under 7th Pay Commission, the salary of central employees is divided into three parts. The first part is basic salary, the second part is allowance and the third is deductible. In order to extract CTC (Cost To Company), a fitment factor has been drawn in the Seventh Pay Commission. It is quite easy to find the CTC of central employees. Basic salary has to be multiplied by the fitment factor (currently it is 2.57) to find the net CTC. After this, the allowance found in it is added. If the net salary is to be ascertained, then after deducting the net CTC, the deductible ie PF contribution, gratuity has to be reduced and this amount is net salary.
For example, if A’s monthly basic salary is 10000 rupees, after removing the allowance, his monthly CTC will be 10000 * 2.57 = 25700 rupees. In the Seventh Pay Commission, the second part of CTC is allowance which includes allowances like Dearness Allowance or Dearness Allowance, Travel Allowance, House Rent Allowance, Medical Reinvestment. In this way, if you want to know the salary of any government babu, then its calculation can be done easily on the basis of basic salary. Basic salary is fixed for different pay level officers.
At present, the Dearness Allowance is 17 percent, which is being increased to 28 percent with effect from July 1, 2021. The calculation of dearness allowance is made on the basis of basic salary. Travel allowance also increases along with Dearness Allowance. In this case, TA will also increase as DA increases. Due to increase in DA and TA, the share of allowance for central employees will increase and their net CTC will increase.
From July 1, the benefit of increasing dearness allowance will be given to 52 lakh central employees and more than 60 lakh pensioners. Also, keep in mind that with the increase in basic salary, the amount of PF and gratuity will also increase. PF is 12 percent of your basic salary and dearness allowance.