Reviewed on 9 October 2026 against Department of Expenditure, PIB, PFRDA and 8th Central Pay Commission sources. Rates change, so check the latest orders before you rely on any figure.
A central government job notice gives a "pay level", not a monthly salary. To work out what you will actually take home, you need to know four things:
- how the 7th Central Pay Commission (CPC) pay matrix sets your basic pay
- how dearness allowance (DA) and house rent allowance (HRA) are calculated on it
- which deductions come out of it
- what is officially known about the 8th Pay Commission
This guide covers central government civilian employees. State governments and public sector enterprises follow their own pay rules, though many states take cues from the central pay commission.
The parts of a central government payslip
| Component | How it is worked out | Where to check |
|---|---|---|
| Basic pay | A fixed cell in your pay level in the 7th CPC pay matrix | CCS (Revised Pay) Rules, 2016 |
| Dearness allowance | A percentage of basic pay, revised twice a year | Cabinet decisions on PIB and Department of Expenditure orders |
| House rent allowance | A percentage of basic pay that depends on the city class (X, Y or Z) | Department of Expenditure HRA order of 7 July 2017 |
| Transport allowance | A fixed amount by pay level and city, plus DA on it | Department of Expenditure transport allowance orders |
| Pension contribution | 10% of basic pay plus DA under NPS or UPS | PFRDA's UPS page |
| Other deductions | Income tax (TDS), health scheme and insurance contributions, recoveries | Your pay slip and department rules |
Keep preparing
Continue with Sarkari Resume Templates₹299 — coaching के एक महीने से काफ़ी सस्ता / far cheaper than a month of coachingHow the pay matrix works
The 7th CPC replaced pay bands and grade pay with a single pay matrix. It has 18 levels, shown as columns, and each level has a series of cells, shown as rows. When pay was first fixed in 2016, the old pay was multiplied by a fitment factor of 2.57. The rules set out this step with worked illustrations.
The matrix starts at ₹18,000 in Level 1 and reaches ₹2,50,000 in Level 18. Here are the first two cells of some common levels, taken from the schedule to the 2016 rules:
| Pay level | Cell 1 (entry pay) | Cell 2 (after one increment) |
|---|---|---|
| Level 1 | ₹18,000 | ₹18,500 |
| Level 4 | ₹25,500 | ₹26,300 |
| Level 6 | ₹35,400 | ₹36,500 |
| Level 7 | ₹44,900 | ₹46,200 |
| Level 10 | ₹56,100 | ₹57,800 |
An annual increment moves you one cell down the same level. Under rule 10 of the 2016 rules, there are two increment dates, 1 January and 1 July. You get one increment a year, on one of those dates depending on when you were appointed or promoted. A promotion or financial upgradation moves you to a higher level.
To find your level, look at the pay-level column of the recruitment notice for your post. Notices from SSC, UPSC and RRBs print it next to each post.
Dearness allowance: the current rate
DA is paid as a percentage of basic pay to offset inflation and is revised for January and July each year. On 18 April 2026, the Union Cabinet approved an increase of 2 percentage points with effect from 1 January 2026, taking DA from 58% to 60% of basic pay. The release says the increase follows the formula based on the 7th CPC's recommendations.
As of 9 October 2026, we found no official order for the July 2026 instalment. Projections are circulating online, but only the PIB release and the Department of Expenditure order fix the rate. When a revision arrives, arrears are usually paid back to the effective date.
HRA by city class
The Department of Expenditure's HRA order of 7 July 2017 set HRA at:
- 24%, 16% and 8% of basic pay for X, Y and Z class cities
- 27%, 18% and 9% once DA crossed 25%
- 30%, 20% and 10% once DA crossed 50%
The order also sets minimum amounts of ₹5,400, ₹3,600 and ₹1,800. A copy of that order is reproduced in this Puducherry finance department memorandum.
DA reached 50% with effect from 1 January 2024. Departments then moved to the top rates. For example, the Delhi Development Authority's circular raised HRA for Delhi (an X city) from 27% to 30% from that date. The 2017 order has no higher step after 50%.
Your city's classification comes from the annexure to the HRA order. If you are allotted government accommodation, your department's rules on HRA and licence fee apply instead.
Worked example: a Level 7 payslip
Illustrative: Level 7, cell 1, posted in an X class city, DA at 60%. This leaves out transport allowance and department-specific deductions.
| Item | Calculation | Entry cell | After one increment |
|---|---|---|---|
| Basic pay | Matrix cell | ₹44,900 | ₹46,200 |
| DA | 60% of basic | ₹26,940 | ₹27,720 |
| HRA | 30% of basic | ₹13,470 | ₹13,860 |
| Subtotal | Basic + DA + HRA | ₹85,310 | ₹87,780 |
| Employee pension contribution | 10% of (basic + DA) | ₹7,184 | ₹7,392 |
| After pension contribution | Subtotal minus contribution | ₹78,126 | ₹80,388 |
The actual amount you take home will be lower. Income tax TDS and any health scheme, insurance or other recoveries also come out of your pay. Your transport allowance, if you get one, is added on top.
Two quick checks you can do on your own payslip:
- DA sensitivity: at a basic pay of ₹44,900, every 1 percentage point of DA is worth ₹449 a month.
- Government's pension share: under NPS the government adds 14% of basic plus DA. That is ₹10,058 a month at the entry cell, rounded from ₹10,057.60. This goes into your pension account and does not appear in take-home pay.
NPS or UPS: the pension deduction
PFRDA describes the Unified Pension Scheme (UPS) as an option under the National Pension System (NPS), effective 1 April 2025, for central government employees.
| Feature | NPS | UPS |
|---|---|---|
| Employee contribution | 10% of basic + DA | 10% of basic + DA |
| Government contribution | 14% to your account | Matching 10% to your account, plus an estimated 8.5% to a pool corpus |
| Assured payout | No | Yes, subject to conditions |
| Minimum pension | No | ₹10,000 a month, subject to conditions |
New recruits choose within 30 days of joining, according to PFRDA. Read the scheme rules before you choose, because qualifying-service conditions decide what UPS pays.
The 8th Pay Commission: what is official so far
Only these points are confirmed by official sources:
- Announcement: the government announced the formation of the 8th CPC in January 2025.
- Terms of reference: on 28 October 2025, the Cabinet approved the terms of reference. The commission must make its recommendations within 18 months of its constitution and may send interim reports.
- Constitution: a Department of Expenditure resolution dated 3 November 2025 constituted the commission. Justice Ranjana Prakash Desai is Chairperson, Prof. Pulak Ghosh is the part-time Member and Shri Pankaj Jain is Member-Secretary.
- Current status: as of 9 October 2026, the 8th CPC website lists consultation visits, including one scheduled in Mumbai for 22–23 October 2026. It has not published recommendations.
The PIB release notes that pay commission recommendations have usually taken effect every ten years, so the 8th CPC's effect "would normally be expected from 01.01.2026". That is an expectation, not a decision. No new pay matrix, fitment factor or allowance rate has been announced. Treat any viral "new salary" table as speculation until the government accepts and notifies the recommendations.
Checklist for reading your offer or payslip
- Confirm your pay level and cell in the appointment letter or pay fixation order.
- Check that DA matches the latest Cabinet decision (60% from 1 January 2026 until the next order).
- Check your city's HRA class and whether you are in government accommodation.
- Note whether you are under NPS or UPS and confirm the 10% deduction is correct.
- Look for your increment date (1 January or 1 July) and check the next cell in your level.
- Compare TDS with your expected tax under the regime you have chosen.
For what happens after you join, read our guides on probation and training periods and promotions in government jobs.