To understand how much will your salary increase after 7th Pay Commission, it is essential to know what the 7th Pay Commission entails. The 7th Pay Commission revised (increased by 23.55%) salaries and allowances, such as Dearness Allowance (DA) and Housing Rent Allowance (HRA). This increase was approved by the Central Government from July 2017. The Pay Commission retained the 3% annual increment rate per year.
Housing Rent Allowance (HRA)
- Increase of 106 -157%
- That is an HRA increase of INR 33,000 for the highest pay level. Total HRA for the highest level is INR 60,000.
- Based on the city category an employee is posted in, the HRA is at:
- INR 1,800 (8%)
- 3,600 (16%)
- 5,400 (24%).
Dearness Allowance (DA)
- If DA is at 25%: then HRA is at 9%, 18% and 27%.
- If DA is at 50%: then HRA is at 10%, 20% and 30%.
Central Government Employee Salaries
- The minimum wage of employees working for the Central Government has increased to INR 21,000 from INR 7,000 per month.
- New recruit Class I Officers officers will earn a minimum salary of INR 56,100 per month.
- The maximum wage pay was increased to INR 2,50,000 from INR 80,000.
- Differently abled employees get a nursing allowance of INR 7,200 and a special of INR 6,750.
- Pensioners are entitled to a fixed medical allowance of INR 1,000.
- Children Education Allowance increased to INR 2,250. This was previously at INR 1,500 per month.
- Children Welfare Allowance increased to INR 3,000. This was previously at INR 1,500 per month.
- Army personnel posted in Siachen will get INR 42,500, previously at INR 14,000.
- Higher Education Allowance increased to INR 10,000-30,000. This was previously at INR 2,000-10,000.
- The ceiling on Gratuity increased to INR 20,00,000, previously at INR 10,00,000.