To understand how much will your salary increase after 7th Pay Commission, it is essential to know what the Pay Commission entails. The 7th Pay Commission revised (increased by 23.55%) salaries and allowances, such as Dearness Allowance (DA), Housing Rent Allowance (HRA) and some Other Allowance. 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.