How to Calculate Salary from Pay Scale, Basic Pay or Grade Pay of Govt Jobs

Here you can learn how to Calculate Salary from Pay Scale, Basic Pay or Grade Pay of Government Jobs. Understanding how salary is calculated is essential for every government employee or aspirant. In India, these salaries are structured around pay scales, basic pay, grade pay, and allowances. The level of pay scale is as per 7th Central Pay Commission (CPC). Here's a clear detailed explanation on how to calculate salary from these.

Important terms

Term	Definition
Pay Scale	Structured Basic salary range consisting of starting and last / maximum
Basic Pay	Starting salary on which allowances are calculated
Grade Pay	Additional fixed pay based on post (only 6th CPC not in 7th)
DA	Percentage of Basic Pay revised periodically every 6 months
HRA	Based on city class – 9%, 18%, or 27% of Basic Pay

 

1. What is Pay Scale?

A pay scale is a salary structure showing a basic pay range from minimum to maximum that an employee can earn on a particular post. For example, under the 6th CPC, a pay scale might be:

5200–20200 + Grade Pay 2400

where:

• 5200 is starting basic pay

• 20200 is maximum or last basic pay

• 2400 is grade pay

2. Understanding Basic Pay and Grade Pay (6th CPC)

In 6th CPC structure:

• Basic Pay = Pay in the Pay Band + Grade Pay

• Grade Pay is fixed based on the post or designation

• Basic Pay is revised annually by increments.

Here you can know about Pay Bands and Levels under the 7th Central Pay Commission (CPC), based on official documents and authoritative sources.

From Pay Bands & Grade Pay to Pay Levels

Under the 6th CPC, salaries were defined by Pay Bands (PB) and Grade Pay (GP). The 7th CPC reorganized this into a simpler structure:

• PB‑1 (5200–20200) + GP 1800 to 2800 → Levels 1–5 - Entry Basic pay ₹18000 – ₹29200

• PB‑2 (9300–34800) + GP 4200 to 5400 → Levels 6–9 - ₹35400 – ₹53100

• PB‑3 (15600–39100) + GP 5400 to 7600 → Levels 10–12 - ₹56100 – ₹78800

• PB‑4 (37400–67000) + GP 8700 to 10000 → Levels 13–14 - ₹123100 – ₹144200

• Higher fixed scales (HAG, Apex, Cabinet Secretary) → Levels 15–18 - ₹182200; ₹205400; ₹225000; ₹250000 (CS)

7th CPC Pay Matrix Structure

7th Pay Commission Matrix is a grid of:

• 18 Levels (hierarchical pay categories, Level 1 being entry level posts of Group D employees like peons, sweeper etc., up to Level 18 for Cabinet Secretary)

• Up to 40 indices (stages representing annual pay increments within each level).

From below given image you can check 7th CPC Pay Matrix table showing all pay scales, basic pays, grade pays etc.

You can check all 40 rows of this pay matrix table at link below.

How to read it:

• Row = Pay Level (identifies your post hierarchy)

• Column = Index (shows your pay after each year of service)

Example: Level 1 (PB-1, GP 1800)

• Entry Index (1): ₹18000 Basic Pay

• Every year, move downward by one index.

• Index 40: ₹56900 Last Basic Pay

How to use Pay Scale to calculate your salary

1. Identify your Pay Scale Level from advertisement of the post. You can also know your old Grade Pay and Pay Band or Check your current Index (years of service).

2. Locate the Basic Pay in the matrix grid.

3. Add allowances: DA, HRA, TA, etc., to compute total salary.

3. Salary Calculation in 6th CPC

For a new govt employee, his / her pay scale shows starting basic pay per month. Below you can check how to calculate salary from pay scale, basic pay / grade pay.

In 6th CPC, grade pay is added to pay scale amount to form basic pay. All allowances are some percentages of this basic salary that are added to it so that total salary can be determined for a post.

Pay Scale in 6th CPC is shown as: for example - 5200-20200 grade pay 1800 for group D posts.

Total monthly salary is calculated using following formula:

Total Salary = Basic Pay + DA + HRA + Other Allowances

Where:

• DA (Dearness Allowance) is a percentage of Basic Pay 

• HRA (House Rent Allowance) depends on city classification from 9-18-27 percent

• Other allowances include TA (Transport Allowance), Medical, Uniform, post specific etc.

Example:

If someone joins at Pay Scale Level 4 on a central govt job, and then starting Basic Pay in this Pay Band 1 is Rs. 25500 per month.

Basic Pay: 25500

DA (55%): 14025

HRA (18% for Y-Class Tier 2 city): 4590

Other allowances as applicable

Total Salary ≈ 25500 + 14025 + 4590 + other allowances = Rs. 44115 + other all.

4. Salary Calculation in 7th CPC (Pay Matrix)

The 7th CPC removed Grade Pay and introduced Pay Levels and a Pay Matrix Table. Each level has a fixed starting Basic Pay and progresses with annual increments.

Example:

If you are in Level 2 (Rs. 19900-63200), the starting Basic Pay is 19900 per month.

Now calculate Total Salary

Assuming:

• Basic Pay = 19900

• DA @ 55% = 10945

• HRA @ 27% or Min. 5400 for metro city = 5400

• TA = 1350

• Other allowances as admissible

Total Salary = 19900 + 10945 + 5400 + 1350 = 37595 per month

5. What Is Difference Between Pay Scale and Basic Pay of Govt Jobs?

• Pay Scale of a Govt post refers to the range of pay in a pay band + grade pay (in 6th CPC) or level (in 7th CPC).

• Basic Pay is the actual amount drawn by the employee based on their position in the scale or level.

6. What Happens After Promotion?

When an employee gets promotion:

• Under 6th CPC: They move to a higher Grade Pay and basic pay increases accordingly.

• Under 7th CPC: They move to a higher Pay Level in the matrix, usually at the next closest higher cell.

So through this detailed info on How to calculate salary from pay scale or basic pay or grade pay, hope you will be able to learn salary calculation of govt jobs in India.

Check All Pay Scale levels in 7th CPC and know salary with calculator