A Pay Commission is set up by the Government of India and it recommends the changes in the salary structure of central government employees. Millions of government employees are waited for the 7th Pay commission to be implemented as it will increase their allowances, salary, and other benefits. The Current 7th Pay Commission was to be implemented in January 2016.
What is a Pay Commission?
The Pay Commission was established by the Indian government to make recommendations regarding the compensation of central government employees. Since India gained its independence, seven pay commissions have been established to examine and suggest changes to the pay structures of all civil and military employees of the Indian government. Manmohan Singh, the then-Prime Minister, approved the 7th Pay Commission, and it will be put into effect by January 2016, according to P. Chidambaram, the former finance minister. The Seventh Pay Commission was not implemented by the suggested date of implementation, nonetheless, because of several challenges.
7th Pay Commission Pay Matrix
Central government employees received a hike on their pay scale from 6th to 7th CPC. The Government designed a pay matrix table to make the new pay scale accessible and understandable for the employees. This table containing the revised salary structure is known as the 7th pay commission matrix.
What is the 7th pay matrix?
Changes in the salary structure of central government employees are represented in a chart called 7th pay matrix. It denotes the minimum pay according to the 15th ILC norms. This single fitment table with 760 cells applies to more than 30 lakh central government employees. This two-dimensional table features a horizontal range numbered from 1 to 18.
However, the vertical range represents 3.00% financial progression per year within each level. It also implies the “pay progression” within a particular level. The 19 columns in this table show the pay levels. However, the 40 rows represent every salary increments that an employee receives throughout the career up to 40 years
What are the features and benefits of 7th pay matrix?
- The 7th pay commission played a crucial role in minimizing the differences between various pay bands.
- With this pay matrix fixation, revised pay has been simplified without any further need for calculation.
- It helps in merging pay bands and grade pay to a composite level.
- Issues with the differential entry pay have been resolved by 7th CPC pay matrix.
- It helps avoid complications with regular promotion, annual progression, span of service, etc.
- 7th pay commission pay matrix helped in solving the PB-3 and PB-4 issues.
- It is more transparent compared to the existing system
- This pay matrix rectifies the challenges of pay progression and appears to be a powerful tool in bringing financial management reforms.
- It helps provide a clear and error-free view of the pay system of the Indian Government.
- It made the administration process streamlined.
What does the fitment factor represent?
The number multiplied equally by the matrix’s basics in every row is called the fitment factor. The basic pay is calculated by the sum of grade pay and pay scale. In case of this 7th Central Pay Commission (CPC), Central Government employees’ current basic pay will get multiplied by new fitment factor.
Resultantly, every Central Government retiree and employee’s basic salary will be multiplied by a fitment factor of 2.57 for this pay commission. So, both pensioners and employees will get a pay hike of 2.57%.
What is the 7th pay commission for pensioners?
As the minimum pay scale of Central Government employees has witnessed a substantial hike, the minimum pension will also increase. According to the Central Pay Commission, an employee’s minimum wage increased from Rs.7000 per month to Rs.18,000 per month. As a result, the pension amount also increased by 2.57 times. So, a central government employee’s minimum pension increased from Rs.3,500 to Rs.9,000.
7th Pay Matrix Table
| Existing Pay Brands | Existing level of Grade pay | Available for* | New levels |
|---|---|---|---|
| PB-1 | 1800 | C | 1 |
| 1900 | C | 2 | |
| 2000 | C,D | 3 | |
| 2400 | C | 4 | |
| 2800 | C,D | 5 | |
| PB-2 | 3400 | D | 5A |
| 4200 | C,D | 6 | |
| 4600 | C,D | 7 | |
| 4800 | C,D | 8 | |
| 5400 | C | 9 | |
| PB-3 | 5400 | C,D,M | 10 |
| 5700 | M | 10A | |
| 6100 | D | 10B | |
| 6100 | M | 10B | |
| 6600 | C,D,M | 11 | |
| 7600 | C | 12 | |
| PB-4 | 7600 | M | 12 |
| 8000 | D | 12A | |
| 8400 | M | 12B | |
| 8700 | C | 13 | |
| 8700 | D | 13 | |
| 8900 | C | 13A | |
| 8900 | D | 13A | |
| 9000 | M | 13B | |
| 10000 | 14 | ||
| HAG | 15 | ||
| HAG+ | 16 | ||
| Apex | 17 | ||
| Cabinet Secretary, Defence Chiefs | 18 | ||
| *C: Civil, D: Defence, M: Military Nursing Service (MNS) | |||
Highlights of 7th Pay Commission
- Minimum pay will begin at ₹18,000
- Maximum recommended pay will be fixed at ₹2,25,000
- Apex positions such as cabinet secretary and others in the same level: Pay begins at ₹2,50,000
- The new system of Pay Matrix will replace the present system of Grade Pay and pay band.
- A factor of 2.57 will be applied uniformly to the existing pay of all the employees to arrive at the new pay scales.
- Annual increment rate will remain constant at 3%, as in the 6th Pay Commission
| Performance Linked Approach | Military Service Pay | Short Service Commissioned Officers | Parity Pay | Review |
|---|---|---|---|---|
| – The performance benchmarks are made more stringent – Performance linked increment system has been recommended | – The Military Service Pay will be available only to Defence Personnel – Revised rates of MSP per month – Serving Officers: ₹15,500 – Nursing Officers: ₹10,800 – JCO Rs: ₹5,200 – Non Combatants (Enrolled) in the Air Force: ₹3,600 | – They will be allowed to exit Armed Forces any time between 7 & 10 years – Terminal gratuity will be equivalent to 10.5 months of the pay – They will be eligible for a 1-year Executive Programme or MTech at a premier institute which will be fully funded | – Similar functionaries will be paid in parity – Parity between field and headquarters staff | – Cadre Review for Group A Officers will undergo systematic changes |
| Allowances | Advances | Medical Facilities |
|---|---|---|
|
|
|
Insurance Coverage
| Level Of Employee | Monthly Deduction | Assured Sum |
| 10 and above | ₹5000 | ₹50,00,000 |
| 6 to 9 | ₹2500 | ₹25,00,000 |
| 1 to 5 | ₹1500 | ₹15,00,000 |
Pension
- Revised pension for Civil and Defence Personnel including CAPF to bring about parity
- Method of computing the revised pension is also recommended
- A slab based system for disability element, for computing disability pension
- In case of death on duty, the rate amount of compensation to kins is to undergo revision
- Recommendations have been made for revision of NPS for the establishment of a redressal mechanism
Gratuity
- Maximum Gratuity has been enhanced to ₹20 lakhs
- If Dearness Allowance raises by 50%, maximum gratuity shall be increased by 25%
Pay scale for Defence Personnel
According to the recommendations made in the 7th Pay Commission, the pay scale for Defence Personnel will be based upon the officer’s rank, area of posting, branch, and designation. The below table shows the detail pay structure:
| Structure | Amount |
| Minimum grade pay for Defence Personnel | Rs.5,400 |
| Pay band | Rs.15,600 |
| Military service pay | Rs.6,000 |
| Kit maintenance | Rs.500 |
Pay Scale for Central Government Employees
| Structure | Amount |
| Pay scale | Rs.29,900 to Rs.1,04,400 per month |
| Grade Pay | Rs.5,400 to Rs.16,200 per month |
| Allowance | Eligibility | Amount |
|---|---|---|
| Hard areas allowance | Applicable to people who are posted in hard areas | 25% of the overall basic pay or Rs.6,750 per month |
| Kit maintenance allowance | Applicable to all officers | Rs.400 per month |
| High altitude climate allowance | Applicable to officers posted in high altitude | Rs.11,200 – Rs.14,000 per month |
| House Rent Allowance | Applicable to officers who do not avail government accommodation facility | 10 – 30% of the basic pay of the officer |
| Siachen Allowance | Applicable to officers posted in Siachen borders | Rs.11,200 – Rs.14,000 per month |
| Transport Allowance | Applicable to all officers | For A1 cities and towns, Rs.3,200 is paid and for all other cities and towns, Rs.1,600 will be paid |
| High Active Field Area Allowance | Applicable to officers who work in high-active field area | Rs.6,780 – Rs.4,200 per month |
| Special forces allowance | Applicable to officers who work in special forces | Rs.9,000 per month |
| Modified field area allowance | Applicable to officers posted in modified field areas | Rs.1,600 per month |
| Dearness Allowance | Usually 80% of Gross pay | |
| Flying Allowance | Payable for officers in flying branch | |
| Technical Allowance | Payable to officers in the technical branch | Rs.2,500 |
FAQs
What is the salary decided for 7th Pay Commission?
According to the 7th pay commission, a newly hired government employee at entry level would now make a minimum salary of Rs.18,000 per month as opposed to Rs.7,000. The minimum pay for a newly hired Class I Officer has been raised to Rs.56,100 per month.
What is the date of increment in 7th Pay Commission?
The date of increment in 7th Pay Commission is 1 July of every year.