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.

Other Allowances

  • 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.

Source: http://doe.gov.in/sites/default/files/7cpc_report_eng.pdf

 

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