In-hand salary explained: basic pay, DA, HRA, TA and deductions
What makes up a central government pay slip and why in-hand pay differs by city, with a worked example.
The four things that add up
- Basic pay: fixed by your pay level in the 7th Pay Commission matrix. Every other amount is calculated from it.
- Dearness Allowance (DA): a percentage of basic pay that compensates for inflation. It is revised twice a year, in January and July. The rate used on this site is 60% (January 2026).
- House Rent Allowance (HRA): 30%, 20% or 10% of basic pay depending on whether you are posted in an X, Y or Z class city. You do not get HRA if you live in government quarters.
- Transport Allowance (TA): a fixed amount by pay level and city, on which DA is also paid.
What is deducted
- NPS contribution: 10% of basic pay plus DA goes to your pension account. The government adds 14% on top, which you do not see in your salary.
- Income tax: under the new regime, with the standard deduction and rebate, many entry-level employees pay little or none.
- Professional tax in states that levy it, and CGHS contribution where the health scheme applies.
Group insurance, GPF for older employees, licence fee for quarters and any loan recoveries are also deducted, but they vary by person, so the calculator leaves them out.
A worked example
A Pay Level 4 post (for example Tax Assistant or Postal Assistant) starts at a basic pay of ₹25,500. In a Y class city at current rates:
| Item | Amount per month |
|---|---|
| Basic pay | ₹25,500 |
| DA (60%) | ₹15,300 |
| HRA (20%) | ₹5,100 |
| Transport allowance | ₹2,880 |
| Gross | ₹48,780 |
| NPS, professional tax and income tax | − ₹4,280 |
| In-hand | ₹44,500 |
Why the city matters so much
The same post pays differently in different places because of HRA and transport allowance. A Pay Level 7 inspector takes home about ₹83,686 in an X class city and about ₹71,826 in a Z class town. The higher figure does not mean you save more: rent in a metro usually eats the difference.
Common questions
Does basic pay increase every year?
Yes. You get one increment a year, about 3% of basic pay, moving to the next cell of your pay level. DA revisions are separate and happen twice a year.
Is the salary in the notification the in-hand salary?
No. Notifications print the pay level or the basic pay range. In-hand pay is basic plus allowances minus deductions, which is what the calculator on each post page works out.
Go further
More guides
- Government career options by field: clerk, peon, courts, doctors, nurses, municipal bodies and more
- Court jobs at every level: Supreme Court, High Courts and district courts
- How to become a government teacher: D.El.Ed, B.Ed, M.Ed, CTET, TET and the recruitment exams
- How government recruitment works, from notification to joining
HowIndiaEarns is an independent guide. Rules change through government orders, so confirm anything that affects your eligibility in the official notification. Pay figures use rates as of January 2026.