7th Pay Commission: All you need to know

New Delhi: Pay Commission is set up by Government of India, and gives its recommendations regarding changes in salary structure of its employees. Since India's Independence, seven pay commissions have been set up on a regular basis to review and make recommendations on the work and pay structure of all civil and military divisions of the Government of India. Headquartered in Delhi, the Commission is given 18 months from date of its constitution to make its recommendations

Justice A.K Mathur headed the Seventh Pay Commission, announcement of which was done on 4 February 2014. On 29 June 2016, Government accepted the recommendation of 7th Pay Commission Report with an increase in salary of 14 percent after six month of intense evaluation and successive discussions.

It comes into effect from January 1, 2016.

The recommendations benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

The new scales of pay provide for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e. Secretary, it would go up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary will be Rs 56,100.

Here we will show you how the 7th Pay Commission will change your exact salary keeping in mind the 4 main pay bands:

Existing Pay Band (5200-20200)

(All numbers are in rupees)

Basic pay = 5200

Grade pay = 1800

Total entry pay = 7000

Dearness allowance: 125% on Basic pay and Grade pay = 8750

Total salary = 7000+ 8750+ allowances = 16750 + allowances

New salary ( as per 7th Pay Commission) = 18000 + allowances

Net difference = 1250

Employees fall under this pay band: Security guard, Junior Attendant, Driver etc.

Existing Pay Band (9300-34800)

Basic pay = 9300

Grade pay = 4200

Total entry pay =13500

Dearness allowance: 125% on Basic pay and Grade pay = 16875

Total salary = 13500+ 16875 + allowances = 30375 + allowances

New salary ( as per 7th Pay Commission) = 35400 + allowances

Net difference = 5025

Employees fall under this pay band: TGT Teacher, Pharmacist, Senior Security Inspector, Junior Engineer etc.

Existing Pay Band (15600-39100)

Basic pay = 15600

Grade pay = 5400

Total entry pay = 21000

Dearness allowance: 125% on Basic pay and Grade pay = 26250

Total salary = 21000+ 26250 + allowances = 47250 + allowances

New salary ( as per 7th Pay Commission) = 56100 + allowances

Net difference = 8850

Employees fall under this pay band: Medical Officer, Manager, Scientific Officer, Assistant Professor, Engineer etc.

Existing Pay Band (37400-67000)

Basic pay = 37400

Grade pay = 8700

Total entry pay = 46100

Dearness allowance: 125% on Basic pay and Grade pay = 57625

Total salary = 46100 + 57625 + allowances = 103725 + allowances

New salary ( as per 7th Pay Commission) = 118500 + allowances

Net difference = 14775

Employees fall under this pay band: Associate Professor