Here is a seventh pay commission calculator based on the pay commission report which allows you to determine your new salary based on the pay matrix. Do share this sheet with your colleagues or friends who work for central or state governments.

For pensioners: Seventh Pay Commission Revised Pension Calculation

The six pay commission introduced the concept of pay grades and did away with the concept of a pay scale. The seventh pay commission wants to get rid of the pay grade and use a simply pay matrix to fix pay.

Here is an extract from the report. The full report can be downloaded from here: http://finmin.nic.in/7cpc/7cpc_report_eng.pdf.

The Commission believes that any new entrant to a service would wish to be able to make a reasonable and informed assessment of how his/her career path would traverse and how the emoluments will progress alongside. The new pay structure has been devised in the form of a pay matrix to provide complete transparency regarding pay progression.

The Commission has designed the new pay matrix keeping in view the vast opportunities that have opened up outside government over the last three decades, generating greater competition for human resources and the need to attract and retain the best available talent in government services. The nomenclature being used in the new pay matrix assigns levels in place of erstwhile grade pay and Table 3 below brings out the new dispensation for various grades pay pertaining to Civil, Defence and MNS (military nursing service). Page 71.

It wishes to assign a level for each existing grade pay, as shown below.

Seventh Pay Commission Pay Fixation

To determine the new salary when the 7th pay commission comes into effect, the following steps need to be adopted. These steps are automated with the excel sheet attached.

1. Add current pay + grade pay*. This sum is your current basic pay.
2. Multiply above sum by 2.57 and call this S. The report says use 2.57 for all cadres. However, in the pay matrix (see below) the multipier varies with grade pay. The calculator allows you to do both.
3. Determine the level corresponding to your grade pay*
4. In the column under your level find the number closest to S. This would be your new salary.
5. (*) If the grade pay has been recommended an increase in the report, use the new grade pay above instead of your old grade pay.
6. Transport allowance and HRA has to be added to this. This is done as per the recommendations of the report.

Seventh Pay Commission Pay Matrix

Download the Seventh Pay Commission Calculator

Thanks to Mahesh Jadhav for pointing out an issue with grade pay 5400. Do let me know if any modifications are necessary.

Want to conduct a sales-free "basics of money management" session in your office?

I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; where to invest; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. I can do the talk via conferencing software, so there is no cost for your company. If you want me to travel, you need to cover my airfare (I live in Chennai)

---

Connect with us on social media

• Twitter @freefincal
• Facebook
• Subscribe to our Youtube Videos
• Posts feed via: Feedburner
• We are also on Google PlusandPinterest

---

Do check out my books

---

You Can Be Rich Too with Goal-Based Investing

My first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create customg solutions for your lifestye! Get it now . It is also available in Kindle format .

---

Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want

My second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a youngearner

---

The ultimate guide to travel by Pranav Surya

This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for ₹199 (instant download)

---

Create a "from start to finish" financial plan with this free robo advisory software template

---

Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too" are now available on Google Play!

---

Install Financial Freedom App! (Google Play Store)

---

Install Freefincal Retirement Planner App! (Google Play Store)

---

Find out if you have enough to say "FU" to your employer (Google Play Store)

---

About Freefincal

Freefincal has open-source, comprehensive Excel spreadsheets, tools, analysis and unbiased, conflict of interest-free commentary on different aspects of personal finance and investing. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. We do not accept sponsored posts, links or guest posts request from content writers and agencies.

Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.