Frequently Asked Questions
Dearness Allowance (DA) for central government employees is 50% of basic pay effective January 2024. It is revised twice a year (January and July).
HRA depends on city classification: X cities (Delhi, Mumbai, etc.) — 27% of basic; Y cities — 18%; Z cities — 9%. Minimum HRA values apply.
TA for Level 1-8 employees in cities with metro: ₹3,600 + DA. Level 9 and above: ₹7,200 + DA. Non-metro rates are 50% lower.
Pay matrix has 18 levels (1-18). Each level has multiple cells. Employees are placed in the cell where their revised basic pay fits. Index of Rationalisation (IOR) ensures no anomaly.
NPS (10% of basic+DA), CGHS (₹250-₹750/month based on level), CGEGIS (Group Insurance), income tax, and optional deductions like LIC, HB advance repayment.
About this calculator
Central government employees are paid on the 7th Pay Commission matrix, with a basic pay set by level and a bundle of allowances added on top. This calculator works out the monthly gross and net salary from the pay level, basic pay, city class, dearness allowance and your CGHS slab.
It shows dearness allowance, house rent allowance by city class (X, Y or Z, at 27%, 18% and 9% in this tool), the transport allowance with DA on it, the NPS deduction and CGHS and CGEGIS. The 8th Pay Commission has been set up, but until its recommendations are notified and implemented the 7th pay matrix governs salaries. DA stands at 63% from 1 July 2026 and is revised twice a year, so update the DA field when a new rate is announced.
How to use it
- Choose your Pay Level and enter your Basic Pay from the pay matrix.
- Choose your City Class: X (27%), Y (18%) or Z (9%) HRA.
- Say whether you live in a higher TPTA city.
- Enter the current DA % and choose your CGHS slab.
- Press Calculate Salary to see earnings, deductions and net take-home.
How the pay is built
DA = Basic × DA%. HRA = Basic × 27%, 18% or 9% by city class. Transport allowance is a fixed amount by level and city, and DA is paid on it. Gross = Basic + DA + HRA + TA with DA. NPS = 10% × (Basic + DA). Net = Gross − NPS − CGHS − CGEGIS − income tax. The Cabinet approved DA at 63% of basic pay from 1 July 2026 on 28 October 2026, up from 60%, and the tool uses 63% by default. DA is revised again each January and July, so update the field when the next rate is notified.
Worked example
Level 1, basic ₹44,900, X-class city, DA 63%
| Basic pay | ₹44,900 |
| Dearness allowance (63%) | ₹28,287 |
| House rent allowance (27%) | ₹12,123 |
| Transport allowance + DA | ₹5,868 |
| Gross pay | ₹91,178 |
| NPS (10% of basic + DA) | ₹7,319 |
| CGHS + CGEGIS | ₹280 |
| Net take-home | ₹83,579 |
DA changes every six months, so check the latest notification before you rely on a figure. Each point of DA adds about ₹449 a month at this basic pay, before the matching rise in transport allowance.
Tips and common mistakes
- Look up your basic pay in the pay matrix row for your level and your current index.
- HRA rates have been revised as DA crossed set thresholds. This tool applies 27%, 18% and 9%, so confirm the rate in your latest office order.
- NPS deduction is mandatory for those who joined after 2004. Employees under the unified pension scheme should check their contribution rates.
- DA arrears can be paid in a lump sum and are taxed in the year of receipt, with relief under Section 89.
- Use the income tax calculator to estimate tax on your gross salary under both regimes.
Frequently asked questions
What is the 7th Pay Commission pay matrix?
A table of basic pay by level and index, from Level 1 at ₹18,000 starting pay to Level 18, used for central government employees since 2016.
How is DA calculated?
As a percentage of basic pay, revised every January and July based on the consumer price index for industrial workers.
What is HRA for central government employees?
This tool uses 27% of basic pay for X-class cities, 18% for Y and 9% for Z. The rates have been revised as DA crossed set thresholds, so check your latest order.
What about the 8th Pay Commission?
It has been constituted, but its recommendations apply only after they are accepted and notified. Until then the 7th pay matrix applies.
Is NPS deducted from salary?
Yes, 10% of basic plus DA for employees under the National Pension System, with a 14% government contribution.
Is the income tax in this tool exact?
It is an estimate. Your actual TDS depends on your declarations and other income.