Grade Pay Explained - Complete Guide to Government Salary Structure

What is Grade Pay?

Grade Pay was a component of the 6th Pay Commission salary structure (2006-2015). It determined the hierarchy and pay level of government employees.

6th Pay Commission Formula

Total Basic Pay = Pay in Pay Band + Grade Pay

                    Note: Grade Pay system was replaced by Pay Levels in the 7th Pay Commission (2016 onwards).
                

6th Pay Commission Structure

Pay Band	Scale Range	Example Grade Pay	Total Basic Pay
PB-1	₹5,200 - ₹20,200	₹2,400	₹7,600
PB-2	₹9,300 - ₹34,800	₹4,200	₹13,500
PB-3	₹15,600 - ₹39,100	₹5,400	₹21,000
PB-4	₹37,400 - ₹67,000	₹8,700	₹46,100

How Grade Pay Worked

📝 Example: Clerk Position

Pay Band: PB-1 (₹5,200 - ₹20,200)

Grade Pay: ₹2,400

Starting Basic Pay: ₹5,200 + ₹2,400 = ₹7,600

Annual Increment: 3% of (Pay Band + Grade Pay)

After 1 year: ₹7,600 + (3% of ₹7,600) = ₹7,828

Key Features:

• Fixed Grade Pay: Never changed throughout career
• Pay Band Movement: Increased with annual increments
• Promotion: Moved to higher grade pay
• Maximum Limit: Could not exceed pay band ceiling

6th vs 7th Pay Commission

Feature	6th Pay Commission	7th Pay Commission
Structure	Pay Band + Grade Pay	Pay Levels (1-17)
Minimum Salary	₹7,000	₹18,000
Increment	3% of total basic	3% of basic pay
Complexity	More complex calculation	Simplified structure

Current Pay Level System

7th Pay Commission (Current)

Basic Pay = Fixed amount based on Pay Level

The 7th Pay Commission simplified the system by removing grade pay and introducing direct pay levels:

• Level 1: ₹18,000 - ₹56,900
• Level 4: ₹25,500 - ₹81,100
• Level 10: ₹56,100 - ₹1,77,500
• Level 17: ₹2,25,000 (Fixed)

                    Advantage: Easier to understand and calculate. No separate grade pay component needed.
                