Basic pay and grade pay are two different things...grade pay is not the part of basic pay... On every promotion, the GP changes to the higher one within the same 'Pay Band' or a higher Pay Band. Annual Increment is decided as 3% of ' Pay' + GP and is added to 'Pay'. There are 4 pay bands, 5200-20000, 9300-34000, 15600-39000, 37400-67000. As several posts are included in each pay band, different grade pay is allowed depending on the status in hierarchy. Depending on what position you hold determine what grade pay you hold.
Grade pay is a new term in 6th pay commission.basic pay is the minimum remuneration given to the employee.It changes from time to time,various perks such as da ,tpt hra.are calculated from basic pay.on the other hand grade pay is given in a hierarchical order.Grade pay remains fixed until the next promotion,basic pay changes with time(annually).
