The attraction of a government job in India lies not only in its stability but also in the excellent salary structure, which may seem simple but is actually as technical. Often people consider pay scale and in-hand salary to be the same, whereas there is a big difference between the two. The pay scale only gives a range of where the salary will start and what it can reach, but the actual income is much more than this, because the government adds many allowances on top of the basic pay which increases the total income many times.

How is the pay scale decided?

The salary of government employees is not decided directly by the government, rather there is a separate committee for this. Pay commission on the basis of whose recommendations the salary is decided. At present all government employees get salary according to the 7th Pay Commission. This pay scale is based on several factors-

• Employee position
• Job responsibilities
• His qualifications and experience
• In which department is the job

On the basis of all these, the pay level is decided – like Level 1, Level 3, Level 6, Level 10, Level 12. Every level has a fixed salary range.

Salary structure of some major levels

Level 1 (Peon, Helper etc.): Rs 18,000-56,900

Level 3 (Clerk, Assistant etc.): Rs 21,700-69,100

Level 4 (LDC, Steno): Rs 25,500-81,100

This is where people often get confused, because this is just a range, not the actual earning. Then, despite the pay scale being Rs 25 thousand, how come one gets Rs 70-80 thousand in-hand? The key to this secret is hidden in the allowances, which are imposed on top of the basic salary and sometimes they reach more than the basic salary.

Major allowances that increase salary manifold

DA- dearness allowance

This can be 50% or more of the basic salary. At present the DA of most government employees is around 50–60%.

HRA- house rent allowance

It ranges from 9% to 27% depending on the city. This happens most in metro cities.

TA- transport allowance

It is decided according to the post and location of the job.

Medical Facility

Every government employee and family gets medical coverage, the value of salary increases further when added to the separate costs.

Pension / NPS / PF Contribution
Provides financial security during employment and after retirement.

a common example

If the basic pay of an employee is Rs 25,500 then-
• DA (50%) = Rs 12,750
• HRA (18%) = Rs 4,590
• TA + others = around Rs 5,000

Total income is approximately = Rs 47,000- Rs 55,000. And in many departments, including special allowance, it even reaches Rs 70-80 thousand.

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