Salary and Pay Comparison


Whenever you apply for any job, the very first and important question that comes in mind is “What will be the package /salary and allowances etc.?”

I have found many candidates always concerned with the salary and allowances they will get in different type of jobs like PSU, State Government, Central Government, R & D organizations, etc. So, I thought to share the pay structure of the PSU, State Government and Central Government jobs in India. I am not going to compare the nature of job, I am only going to tell you the pay structure and the initial salary you get in PSU, State Government and Central Government. I have considered the Pay Band-3 in CDA scale and Executive Grade IDA Scale in PSUs.

Central PSU (IDA Scale) State PSU (CDA Scale) Central Government (CDA Scale) State Government (CDA Scale) R & D Organization (BARC/DRDO etc.) (CDA Scale)
Basic Pay (INR) 16400 or 20600 or 24900 15600+5400 15600+5400 15600+5400 15600+5400
DA rate on 31st Dec. 2015 107.9 % 119 % 119 % 119 % 119 %
Cafeteria Allowance rate 46 to 51 % NIL NIL NIL NIL
HRA rate (depend on place of posting) 10 or 20 or 30 % 10 or 20 or 30 % 10 or 20 or 30 % 10 or 20 or 30 % 10 or 20 or 30 %
Lease Amount Approx. 16000-21000 May or May not be NIL NIL NIL
Conveyance/Transportation Allowance (depend on place of posting) Approx. 3000-5500 1600 or 3200 plus DA 1600 or 3200 plus DA 1600 or 3200 plus DA 1600 or 3200 plus DA
Telephone Reimbursement Approx. 500-1500 CUG System CUG System CUG System CUG System


General Formula for Salary Calculation

Gross = Basic * (100 + DA rate + Cafeteria rate + HRA rate)/100 + Conveyance Allowance

Deductions

The Various deductions in the salary may be under following heads:

              IDA Scale : EPF, LIC Scheme, Social Security, Income Tax etc.

              CDA Scale : NPS, CGHS, Professional Tax, Income Tax etc.

 

EPF Vs. NPS

EPF refers to Employee  Provident Fund which has generally fix annual rate of interest and is a compulsory instrument of Tax saving for the government organizations whereas NPS refers to New Pension Scheme, started 2004 onwards appointments to the Central Government Employees and Sate Government Employees. The NPS is also a compulsory instrument of Tax saving for the Government Employees governed by this scheme. The rate of return is variable (may be positive, negative or zero) in NPS because it is based on the market value of the funds invested in Equity.

 

CDA Scale Vs IDA Scale ?

CDA means Central Government Dearness Allowance while IDA means Industrial Dearness Allowance. CDA is applicable to the Central government, state government and state PSUs while IDA is applicable mostly to all the Central PSUs. The DA revision is half yearly in CDA whereas it is quarterly in IDA pattern. CDA and IDA are calculated based on the All India Consumer Price Index number/ Market rates/ Other Price Indices etc.

For Example:

IDA rate (%) CDA rate (%)
From 01 January, 2015 100.3 113
From 01 April, 2015 100.5 113
From 01 July, 2015 102.6 119
From 01 October, 2015 107.9 119

 

Disclaimer– Above article compares the pay and allowances as they exist as of now. When 7th pay commission report will be implemented , it will be updated in that context.