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Before Central Government Implemented Sixth Pay Commission there used to term called Pay Scale. This Pay Scale used to determine the rank and other benefits of the post. Generally a Pay Scale tells what is the starting Basic, what is the increment amount for every year and what is the last basic in the Pay Scale. For example take a Pay Scale, for the post of Scientist or Officer 8000-275-13500 here 8000 is the starting basic bay for the post. 275 is the increment amount for the post every year. 13500 is the last basic pay that post will attain after adding all the increments in the service when a person joins in the post he will get 8000 as the basic pay after one year he will given increment 275 so his basic pay will become 8275 like this every year he will get one increment and his basic pay will stop at 13500. PayScale was used to determine the rank of the post also. for example most of the 8000-275-13500 pay scale posts are gezetted. all people who are having payscale 8000-275-13500 are eligible to travel by air for official duty. all 10000-325-15200 pay scale posts used to get two additional increments like this so on.
GradePay, PayBand
After Implementing Sixth Pay commision Government removed this Pay Scale term. Instead of this Pay Scale Introduced two terms One is Pay band and second one is Grade Pay
Grade Pay will determine the rank of the post and other benefits Pay band will determine the starting pay and end pay for the post For example Scientist or Officer entry level will get grade pay 5400 and Pay band 15600-39100
So an officer will get starting pay 15600 (this is called pay in pay band) and Gradepay 5400 now his
basic pay will be 15600+5400 (Pay in Payband + Gradepay) i.e 21000 is the basic Pay
Sixth pay commission recommended 3% of basic pay as increment (unlike fixed amount 275) after one year 3% of is basic pay will be the increment i.e 21000*3/100 = 630 is the increment amount so his pay in pay in Payband is 15600+630 i.e 16230 and his Basic Pay will be 16230 + 5400 like this pay in payband will go up to 39100 (last amount in pay band 15600-39100)
Along with Transport allowance DA on Transport allowance also will be paid to the employee. this is to compensate price increase in Transport expenses. current DA is 72% percent so if Transport allowance is 3200 then 72% of 3200 will paid as DA on Transport Allowance.