Pay Matrix & HRA - PDF
In the Indian government salary structure, the Pay Matrix determines an employee's Basic Pay, which then serves as the base for calculating the House Rent Allowance (HRA).
1. Pay Matrix Overview
The Pay Matrix is a grid-based system introduced by the 7th Central Pay Commission (CPC) to replace Pay Bands and Grade Pay.
Horizontal Levels: Correspond to functional roles (Levels 1 to 18).
Vertical Cells: Represent pay progression (annual 3% increments) within each level.
Minimum Pay: Starts at ₹18,000 (Level 1, Cell 1).
2. House Rent Allowance (HRA) Calculation
HRA is calculated as a percentage of the Basic Pay derived from the Pay Matrix. The rate depends on the classification of the city where the employee is posted.
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