The Government of India on Tuesday published 7th Pay Commission notification. The central government employees will now get the revised salary from August 1.

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Ministry of Finance had cleared 7th Pay Commission recommendations for its 47 lakh central government employees and 52 lakh pensioners last month. The basic salary of an employee was increased from Rs 7000 to Rs 18000 per month. 

The government announced 23.55% overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7% of the gross domestic product (GDP).

Under the notification, the minimum pay in government will be with effect from January 1. 

The pay in the applicable Level in the Pay Matrix will be the pay obtained by multiplying the existing basic pay by a factor of 2.57, the notification said.

Here's how you can calculate the revised salary:

For example:

Existing Pay Band: PB-1
Existing Grade Pay : 2400
Existing Pay in Pay Band: 10160
Existing Basic Pay : 12560 (10160+2400)

Pay after multiplication by a fitment factor of 2.57 : 12560 x 2.57 = 32279.20 (rounded off to 32279)

Which is Level 4. Therefore, Revised Pay in Pay Matrix (either equal to or next higher to 32279 in Level 4) : 32300.

Similarly, suppose, if an employee is entitled to Dearness Allowance and Non-Practicing Allowance (NPA) the pay in the revised pay structure will be fixed in the following manner:

Existing Pay Band : PB-3
Existing Grade Pay : 5400
Existing pay in Pay Band : 15600
Existing Basic Pay : 21000
25% NPA on Basic Pay : 5250
DA on NPA@ 125% : 6563
Pay after multiplication by a fitment factor of 2.57:
21000 x 2.57 = 53970
DA on NPA : 6563 (125% of 5250)
Sum of 53970+6563 = 60533
Level corresponding to Grade Pay 5400 (PB-3): Level 10
Revised Pay in Pay Matrix (either equal to or next higher to 60540 in Level 10) : 61300
Pre-revised Non-Practicing Allowance : 5250
Revised Pay + pre-revised Allowance : 66550

The recommendations on Allowances (except Dearness Allowance) will be referred to a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members. The Committee will submit its report within a period of four months.

"Till a final decision on Allowances is taken based on the recommendations of this Committee, all allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016", the notification said.

Lastly, under the notification, the recommendations of the Commission relating to interest bearing advances as well as interest-free advances have been accepted with the exception that interest-free advances for Medical Treatment, Travelling Allowance for family of deceased, Travelling Allowance on tour or transfer and Leave Travel Concession shall be retained.