7th Pay Commission In-Hand Salary for Pay Level 4 to Level 7: Full Breakdown with Deductions

Job notifications mention a pay level, such as "Pay Level 7 (₹44,900 – ₹1,42,400)", but that range says little about what reaches your bank account. The first salary slip usually surprises new joiners in both directions: the gross is higher than the basic pay because of allowances, and the in-hand is lower than the gross because of deductions. This guide works through the numbers for Pay Levels 4 to 7, the levels of most SSC CGL, CHSL and similar Group B and C posts.

Which Posts Fall in Levels 4 to 7?

The pay level is always printed in the notification against each post. As a rough guide from recent SSC notifications:

• Level 4 (starting basic ₹25,500): Postal / Sorting Assistant, Tax Assistant, Upper Division Clerk, Data Entry Operator (some departments)
• Level 5 (₹29,200): Auditor, Accountant, Junior Accountant
• Level 6 (₹35,400): Junior Statistical Officer, Sub-Inspector in CBI, Divisional Accountant
• Level 7 (₹44,900): Assistant Section Officer, Inspector (Income Tax / Central GST / Customs), Assistant Enforcement Officer

The same post can sit at different levels in different departments, so always confirm the level in the official notification for your post.

The Components of Your Salary

1. Basic Pay

Every new joiner starts at the first cell of their level in the 7th CPC pay matrix: ₹25,500 for Level 4, ₹29,200 for Level 5, ₹35,400 for Level 6 and ₹44,900 for Level 7. Basic pay rises by one cell (about 3%) at each annual increment, which falls on 1 January or 1 July. Almost every other component is calculated from the basic, so it is the number that matters most.

2. Dearness Allowance (DA)

DA compensates for inflation and is a percentage of basic pay. The government revises it twice a year, effective January and July, usually announcing the change a few months late with arrears. The examples below use 58%, the rate in effect from July 2025. If the rate has changed when you read this, recalculate with the formula at the end of this guide.

3. House Rent Allowance (HRA)

HRA depends on the city you are posted in. Since DA crossed 50% in January 2024, the rates are:

• X cities (Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Pune): 30% of basic
• Y cities (most other large cities and state capitals): 20% of basic
• Z cities (all other places): 10% of basic

You do not get HRA if you live in government accommodation; instead, a licence fee is deducted.

4. Transport Allowance (TA)

For Levels 3 to 8, TA is ₹3,600 a month in the larger cities on the government's transport allowance list, and ₹1,800 elsewhere. DA is paid on TA too, so at 58% DA the actual amounts are ₹5,688 and ₹2,844.

The Deductions

• Pension contribution: under NPS, 10% of (basic + DA) is deducted, and the government adds 14% to your pension account. Employees who opt for the Unified Pension Scheme (UPS), available from April 2025, also contribute 10%, with a higher government share. The deduction from your salary is the same either way.
• CGHS: in cities covered by the Central Government Health Scheme, a monthly subscription is deducted: ₹250 for Levels 1 to 5, ₹450 for Level 6 and ₹650 for Levels 7 to 11.
• CGEGIS (group insurance): ₹30 a month for Group C posts and ₹60 for Group B posts.
• Income tax: covered in its own section below.

Monthly Salary: X City (Highest HRA and TA)

Monthly Salary: Z City (Lowest HRA and TA)

The Z city figures assume CGHS is deducted; in places without CGHS cover there is no CGHS deduction, so the in-hand pay is slightly higher. Y city salaries fall between the two tables, with the TA depending on whether the city is on the transport allowance list.

Is Income Tax Deducted?

Under the new tax regime for FY 2025-26, salaried income up to ₹12.75 lakh a year (₹12 lakh plus the ₹75,000 standard deduction) attracts no tax because of the Section 87A rebate. Even the highest example above, Level 7 in an X city, comes to about ₹10.8 lakh a year in gross pay, so a new joiner at any of these levels pays no income tax in the first year under the new regime. That changes as DA and increments rise, so check each year, especially at Level 7.

Recalculate It Yourself When DA Changes

1. DA = basic × current DA rate
2. HRA = basic × 30%, 20% or 10% depending on your city
3. TA = ₹3,600 or ₹1,800, plus the same DA percentage on it
4. Gross = basic + DA + HRA + TA
5. Deductions = 10% of (basic + DA) + CGHS + CGEGIS
6. In-hand = gross − deductions − any income tax

Each 2% rise in DA adds roughly ₹500 (Level 4) to ₹900 (Level 7) to your gross each month, and the pension deduction rises by about a tenth of that.

What About the 8th Pay Commission?

The 8th Pay Commission has been set up to revise central government pay, but its recommendations had not been implemented at the time of writing. When they are, the pay matrix will be replaced and DA will typically reset to zero on a higher basic. Until then, the 7th CPC figures above are what employees are paid. Treat any "8th Pay Commission salary" figures you see online as estimates until an official notification is issued.

The figures in this guide are worked examples, not official numbers. Your department's pay slip and the official pay matrix are the final authority.