Explain that under the Sixth Pay Commission, the basic salary entry level of the employees was 7 thousand, on which 125 percent dearness allowance was available. After the implementation of the Seventh Pay Commission, the salary of the employees has increased by up to 14 percent. Along with this, DA is also being given.

Role of pay matrix in salary of employees

The pay matrix table gives complete information about the basic salary of the central employees to the increase. This is a simple salary structure. Under this, pay levels have been created, due to which it is easy to calculate the salary. Five salary levels have been created under the pay matrix table.

• Rs 18000 Rs 56 thousand 900 under first pay level
• 19,900 to 63,200 under the second pay level
• Rs 21,700 to Rs 69,100 in the third pay level
• Rs 25,500 to Rs 81,100 in the fourth pay level
• Rs 29,900 to Rs 92,200 in the fifth pay level

what is pay matrix table 

The pay matrix chart shows the salary of government employees. Their salary has been divided according to the pay level. You can calculate your level and increment using the pay matrix. Under the Seventh Pay Commission, all the employees can calculate their salary with the help of this pay matrix. Under the Seventh Pay Commission, the minimum limit of pay level is Rs 18 thousand, which means that no employee will get salary less than this.

How is the salary calculated under the 7th Pay Commission? 

The Seventh Pay Commission was implemented on January 1, 2016, due to which the fitment factor or basic salary of the employees increased by 2.57 times. The salary of government employees is calculated on the basis of basic salary. Total monthly salary is given by adding total basic salary + DA + HRA + travel account + other allowances.

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That’s why it is also called token of appreciation. If you are a government employee, then you do not have to pay any tax on the amount received in gratuity. However, if you are a private employee then there is a tax rule on your gratuity.

Earlier, if a person received gratuity more than Rs 10 lakh, then he had to pay tax on the excess amount. However, now it has been increased to Rs 20 lakh. This means that if you get Rs 20 lakh as gratuity, no tax will be charged, but if you get Rs 21 lakh, you will have to pay tax on Rs 1 lakh.

How will the tax be calculated?

If someone has received a gratuity of Rs 21 lakh, then the additional Rs 1 lakh will be added to the annual income of that person. After this, according to the tax slab in which his new salary will come, tax will be collected from him.

How is gratuity calculated?

There is a fixed formula for calculating gratuity. (Last Salary) x (15/26) x (number of years worked in the company) = total gratuity amount. Suppose you worked in a company for 20 years and your last salary was Rs 50,000 per month. This gives you 2 numbers in the formula.

Now 15 and 26 are left, what is this? When gratuity is calculated, only 26 days are counted in a month because 4 days leave is removed. In this formula, 15 means that only 15 days of gratuity is available in a year. The calculation will be something like this – (50,000) x (15/26) x (20) = Rs 576,923. That is, after 20 years of service, you are entitled to a gratuity of about Rs 6 lakh.

Where is gratuity not available?

If the number of employees in a company is less than 10, then there is no provision for gratuity. However, if a company previously had more than 10 employees and recently this number has come down due to downsizing, even then the existing employees will be entitled to gratuity.

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It is believed that next year the salary of central employees can increase by more than 44 percent. Along with this, salary should be reviewed on any other formula other than the Fitment Factor. At the same time, a lot of changes can be seen in this pay commission as compared to the old commission.

On what basis is the salary of the employees calculated?

Under the 7th Pay Commission, at present the minimum salary of the employees is Rs 18,000 and the government had implemented the fitment factor for this salary. There was a lot of opposition to this at that time, but Finance Minister Arun Jaitley believed that some new scales should be used to fix the salary of central employees, due to which the fitment factor was implemented, on which Salary of the employees is calculated.

Salary can be increased from 18,000 to Rs 26,000 directly.

Let us tell you that the fitment factor in the Seventh Pay Commission was 2.57 times, after which the salary of the employees increased by 14.29 percent and due to this increase, the minimum salary of the employees was fixed at Rs 18,000. . At the same time, under the Eighth Pay Commission, it is believed that this time the fitment factor may be 3.68 times, after which the salary of the employees may increase by 44.44 percent. At the same time, the minimum salary of the employees can directly increase from Rs 18,000 to Rs 26,000.

When can 8th pay commission be implemented?

At present, no proposal of any kind has been presented by the Central Government regarding the Eighth Pay Commission. On the other hand, if sources are to be believed, the government can introduce the Eighth Pay Commission in the year 2024 and it can be implemented in the year 2026. Let us tell you that to implement this, the Pay Commission can also be formed in the year 2024. At the same time, experts are assuming that general elections are to be held in the country, so the government can give a big gift to the employees soon.

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New Delhi. It is possible that the government may soon reduce the period of gratuity. Discussion is going on about this. The government is considering reducing the time of gratuity from 5 to 1 year. That is, if you work even for 1 year, then you will be entitled to gratuity. At present, for this you have to work in a company for 5 years. Not only this, the provision regarding transfer of gratuity on leaving the company like PF is also being discussed.

But what is Gratuity? If you work for a long time in a company, then you get gratuity in addition to salary, pension and provident fund. It can be treated as a reward. If the employee meets the standards set by the company for a long time, then he is given gratuity. Its formula is predetermined. One very important thing to note here is that a small part of gratuity is also deducted from your salary. At the same time, the company gives the rest of the share. That is, if you leave the company before the completion of gratuity, then you do not even get the money deducted from your salary.

Which companies have to pay gratuity?

The provision of gratuity has been made under the Payment of Gratuity Act 1972. According to this, gratuity will be given to the employees of every institution where more than 10 employees work. Even if the employee retires or leaves the company even after fulfilling the rules of gratuity, he will still get its benefit.

There is a fixed formula for how gratuity is calculated . Your last salary*(15/26)*(years of work in the company). If you have worked in any company for 10 years then your last salary is Rs 80000. So your gratuity will be calculated like this- 80000*(15/26)*(10). Your gratuity will be Rs 461538. Here 26 is the number of working days in a month. At the same time, gratuity is calculated on the basis of only 15 days of the year. The sum of basic salary and dearness allowance is counted in the final salary. Another important thing to note is that if a person has worked for 6 years and 7 months, then it will be considered as a complete seven years. That is, after working for more than 6 months after 5 years, it will be considered as a full year at the time of gratuity calculation.

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