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A pay commission revision multiplies existing basic pay by a fitment factor to arrive at the revised basic, then rebuilds allowances as percentages of that new figure. Because dearness allowance is reset to zero at implementation and then rebuilt, the headline increase overstates the long-run gain.
Revised basic pay
Revised basic = Existing basic pay x Fitment factor
Gross salary
Gross = Revised basic x (1 + DA % + HRA %)
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.
Because the fitment factor already absorbs the accumulated DA into the new basic. DA then starts accruing again from zero.
No. Allowances are recalculated as percentages of the revised basic, so they rise automatically without a separate factor.