Step by Step guide to calculate salary after seventh pay commission 7cpc

Step by Step guide to calculate salary after seventh pay commission 7cpc.

Lets take an example of a govt employee say priyesh under 4600 GP working from 2011 with current basic pay of 14140 (13500+yearly increments) + Grade pay 4600

STEP 1

Add Basic Pay + Grade Pay

Here it will be (14140+4600) = 18740

STEP 2

Multiply the above figure with 7th CPC Fitment Factor (Index) 2.57
Multiply your Basic pay with this fitment facor
ie, 18740 * 2.57 = 48161.8
Round off this figure to higher Rupee
Then we get 48162

STEP 3
Compare this Answer with Matrix Table ( Given Below) and select closest higher figure (Click on the pic to zoom)

Our Figure is 48162 so we take the nearest highest value which is 49000
This figure is your Basic Pay i.e. Rs 49000

STEP 4
Calculation of HRA:
7cpc has the following changes w.r.t HRA
30 % is changed to 24 %
20 % is changed to 16%
10 % is changed to 8 %

Find the 24% of the Basic Pay = 49000 x 24/100 = 11760

Your HRA is Rs.11760

STEP 5
Dearness Allowance (DA)
Since DA will be Zero from 1.1.2016 So no need to calculate the DA.

STEP 6
TPTA (Transport Allowance)
7th CPC Recommends Transport Allowance for three Category of Employees for Two Types of Places
If you are living in A1 and A classified cities you will be entitled to get higher TPTA rates

A1 and A Others
GP 5400 and above 7200+DA 3600+DA
GP 2000 to 4800 3600+DA 1800+DA

GP 1800 t0 1900 1350+DA 900+DA

Since Grade Pay is 4600 our guy falls in Second category
ie Grade Pay 2000 to 4800 = Rs 3600+DA

Your TPTA is Rs. 3600 (DA is Nil as on 1.1.2016)

STEP 7
Gross Pay
Add all the figures
New Basic Pay + HRA+DA+TPTA = 49000+11760+0+3600 = 64360

Your revised 7th CPC Grass pay as on 1.1.2016 = Rs.64360.

Deductions:

STEP 8
NPS:
It is deducted on basic pay and is 10 %
so NPS deduction is 10 % of 49000 = 4900

STEP 9
CGEGIS:

Here
1 to 5 means GP 1800-2800
6 to 9 means GP 4200-5400 (PB 9300-34800)
10 and above means GP 5400 (PB 15600-39100) and above
Our guy falls in second category with GP 4600, so CGEGIS deductions will be Rs. 2500

STEP 10
CGHS:
Rates are as below

1800,1900,2000,2400 and 2800	125
4200	225
4600, 4800, 5400 and 6600	325
Above 7600	500

Our guy with 4600 GP falls in third category with Rs. 325 deduction

Step 11
Total Deductions:
NPS+CGEGIS+CGHS = 4900+2500+325 = 7725

STEP 12
Cash In Hand (Net Salary):
Gross salary - Deductions => 64360-7725 = Rs. 56635

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