What is Grade pay in Central and State Government Jobs?

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Asked on January 7, 2019 10:08 pm
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The Grade Pay concept introduced the 6th Pay Commission which was applicable from 01.01.2006. Most of the state government also followed the same pay structure for their state employees.

In 6th Pay Commission, the pay scales divided into 4 pay band (PB) and these PBs further have one or more Grade Pay (GP).

The lowest pay scale 5,200 - 20,200 in PB-1 and it is associated with the Grade Pay 1,800. The PB-4 pay scale 37,400 - 67,000 having highest  Grade Pay of 10,000 among all.

Importance of Grade Pay

  • Deciding Rank among employees
  • Calculating the entry pay (Initial basic pay for new appointees) in a Cadre
  • Various benefits & facilities (like Transfer Allowance, Transport Allowance, Quarter Allotment Eligibility, Conveyance Allowance, etc) for government employees directly depend on Grade Pay of staff /officer.
  • Eligibility for the deputation or recruitment on experience basis also decided on the basis of rank
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