7th Central Pay Commission Principles, Calculator and Latest News !!
After India got its independence, the Government of India has set up a pay commission for all the people of India. The commission was set up to provide you with all the recommendations and changes that may be needed in the salary structure for the employees all over India. Till now, the commission has been set up in regular intervals so that they can review and make some changes in the pay structure for all military as well as civil divisions of India. The headquarter of Pay Commission of India is located at New Delhi and till now seven pay commissions have been set up to look after the pay structure. Check all details about 7th pay commission below.
About 7th Pay Commission:
On September 25th 2013, the former Finance Minister P Chidambaram under the leadership of former Prime Minister of India Dr Manmohan Singh had given the green signal to approved the constitution of the pay commission for the seventh time. It was seen that the Govt. of India then initiated all the process of constituting the 7th pay commission and with it they too finalize the Terms of Reference and all the composition and timeframe for the same.
After all the hard work is done and over, it got implemented with effect from January 1st 2016. Justice A.K Mathur headed it, and the salary was increased by 14 per cent after the sixth month of evaluation.
What was Recommended in the 7th Pay Commission?
When the pay commission was created to change the pay structure for the people of India, then here is the list of things that were recommended by the commission.
- The commission has recommended a minimum pay for all government employees.
- They recommended a maximum pay for the government employees.
- Want to implement low pay structure and pay matrix in at earliest.
- They recommended providing a full pay injury and work-related illness leave.
- Hike in dearness allowance, house rent allowance.
- Revision of old pension payment scheme.
- Revise the pay scale for all defence forces.
These are some of the top and best recommendations that the 7th pay commission of India wanted. They work hard to make things good concerning inflation and other prices that keeps on increasing with each passing year.
After all these things, the next big thing that comes to the kind of people is how to know how much you will get under the 7th Payscale commission. If you too are in doubt and in search of getting some information about the same, then you need to look at the below steps which are mentioned here.
All about 7th Pay Commission Payscale Calculator:
When you want to calculate the 7th pay grade salary, you need to keep follow these things as mentioned here.
Step 1:
In the very first step, you need to make sure that you must enter the current basic pay that you are getting.
Step 2:
After that, you need to choose the pay grade for the current period under which you come.
Step 3:
When you completed the above two steps, you need to select HRA, which is based on all the population of the city.
Step 4:
In the last step, you need to select the city or other to know about the travelling allowances.
These are the step before you enter to the calculation part for the 7th pay commission.
Steps for Calculation:
Step 1:
In the first step, you need to enter (Basic + Grade Pay) * 2.57.
Step 2:
Here you need to search for the highest salary from the Matrix table.
Step 3:
After that, you need to calculate the step 2 result * HRA %.
Step 4:
Calculate the grade pay based on your city
Step 5:
At the last step, you need to add up all the above things, and the result that you get here is the final salary that you will be getting.
These are the detailed explanation of all the steps and how to calculate and to know how much you will be getting from the 7th Payscale commission.
Latest Changes were done to 7th Pay Commission:
In the very recent update, all the central government employees are happy. It is because, with the last update, the government has provided you with the host of all-new benefits that can help you to save a right amount of money when any employee get retired or even leave the job.
With the ongoing update, the government has already accepted the condition to increase the gratuity ceiling from ten lakh to twenty lakh. Moreover, with this development, the government too has doubled tax-free gratuity limit till Rs 20 Lakhs. All these things now act as a significant boost to all central employees and for all people who all want some massive amount from the bank when they get retired. With all these things are getting implemented, now all the central employees will be receiving with more gratuity and also can save with massive taxes.
But with all these things, in a statement, it was mentioned that the amendment that comes with the impact is said to be very evident. It means when there is the hike in the ceiling limit of all maximum exemption which helps to reduce the taxable gratuity amount, and it comes with benefit for all people who all earn high salaries in short time. Apart from that, if you have got a significant time before retirement, then the amendment can benefit you too.
Conclusion
In the Union budget 2019, there is no mentioned about an increase in the minimum wage of the employees. But the exclusion of these things is said to be not affected by many as they too get the best idea for employees. Even the DA is now adjusted for all government employees and all pensioners due to the impact of the increase in inflation rate in India. So, they have done in the right way so that they can enhance them with cope up with all increasing prices and other things.
Sudha is the senior publisher at Finance Glad. Sudha completed her education in BBA (Bachelor of Business Administration). She lives in Chennai. She is currently heading towards the banking topics. Sudha is an expert in analyzing and writing about most of the banks and credit card reviews. Sudha main hobbies and interests are reading, writing and watching the quality stuff over the internet. She usually wants to learn more productive stuff and share the best information to her readers over the internet via Finance Glad.