General Salary System in india. is it Idol?

By | January 2, 2019


Employees contains various component in India :

  1.  Basic Pay
  2. Grade Pay
  3. Dearness Allowance
  4. House Rent Allowance
  5. LTA
  6. Perquisites etc.


a) BASIC PAY
In your question the pay band would be 5200-3%-20200 and grade pay is 2800. This symbolizes the following:
5200 denotes: The initial basic pay which you will receive as soon as u join the govt department .
3% denotes: The amount of hike that you will receive to meet the inflation every year i.e. you will get a salary hike of 3% every year in the same cadre/designation.
20200 denotes : The highest basic you can get in the same cadre/designation would be 20200/-. However before reaching 20200/- you ll be promoted to next cadre/ rank having salary slab like 6400-3%-26200.

b) GRADE PAY
Grade pay is amount paid in excess of basic pay to meet the inflation i.e. Rs 2800/-.

c) DEARNESS ALLOWANCE
The dearness allowance is the fixed percentage of pay on basic+grade pay fixed by govt at every interval. In case of PSU DA is revised after every three months and in case of state govt and central govt employees, it is revised once in six months. Current DA for central govt employees is 119% of the basic + GP.

d) HOUSE RENT ALLOWANCE
The payment of HRA varies from govt org/department to department. Further the HRA rate also varies from place to place. There are 3 percentage of HRA based on the population and price index of particular area. In metropolitan cities the HRA is 30% of the Basic +GP, however in part B Cities it is 15% and remaining area it is 10%. It is not out of place to mention that if you are provided with government quarter, then HRA will not be paid. You need to confirm it from your HR.

 The net pay of the person in the same organisation in the same cadre may varies due to difference in payment of HRA, perquisites etc. Suppose if you are posted in remote area , you may get some remote area allowance which the other person may not get. It all depends on the department /organisation policies. 

The minimum pay you ll receive if you join in the aforesaid mentioned grade pay will be (5200+2800*2.19)= 17520/- (Only basic + GP+DA).

For rest details like perquisites, other allowances you need to contact your HR.
 Hope the information provided by me is useful. Thanks for reading. Good Luck 🙂

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