The Seventh Pay commission

The Pay Commission is an administrative system governed by the Government of India. The purpose of this system is to determine and suggest required changes to the salary of Government employees. All Central Government employees (including industrial and non-industrial) All personnel of the Union Territories. The Pay Commission is, however, not a constitutional body.

From time to time, by the end of every decade, the Government revises the pay and perks of its servants. It is generally done for the officers to cope with the growing economic scenario, based on the living standards and the income earned by its servants. The services include the pure government services, and the other government-owned public sector undertakings have a different package. Still, there has always been a difference while fixing the salaries and perks of Military personnel and civil personnel.

The services departments staffed by officers and clerical categories of employees get the advantage of pay revision recommended by the Pay commissions duly appointed by the Government.

The Seventh Pay Commission got appointed with Sh A.K. Mathur as the committee head.

The seventh pay commission was appointed as there were murmurs around the military sector when they were not given equanimity with their civil employees while revising the pay and perks. The Military or the defence department is indeed of prime importance as they are the guardians of the Nation. They are given various fringe benefits, which the other civil servants do not get as they rightly deserve such treatment.

However, regarding pay scales, in comparison with the civil servants were not at par at various levels. The government-appointed the Seventh pay commission to evaluate and recommend changes so that the Military personnel could get their rightful salary package and their promotional avenues cadre wise. The civil servants enjoyed a time scale promotion, which was not there in the Military cadres. Though the Seventh Pay Commission report was to be implemented in 2016, it was delayed for various reasons.

Thus the 7th pay commission establishes a new pay matrix and pays scale that ensures pioneer and government employees get a 2.5% hike on their current income. The salary of a central government employee gets doubled. The “Fitment factor” of the 7th pay commission stands at a 3% annual increment for all employees. Henceforth the pay matrix came into action instead of the earlier grade pay standard. The apex scale employees receive an increased salary amount of Rs. 2.25 lakh per month, and for the office cabinets, the maximum wage is Rs.2.5 lakh. For the defence section, a total salary of Rs. 2,50,000 and a minimum payable wage of Rs. 21,700 has been set according to the 7th pay commission. The Indian Government handles the entire cost of this whole exercise.

The Central Government implemented the Seventh Pay Commission recommendations in July 2018, and nearly 5 million central government employees benefitted. They revised trip allowance, accident allowance, outstation posting compensation, Difficult areas compensation, etc. The central government also appointed the LAVASA committee to examine the current budget and consider including or excluding specific allowances.

The Seventh Pay Commission also recommended highly simplified pension calculations based on the current revisions. The importance of the Seventh Pay Commission recommendation is that it follows a MATRIX SYSTEM of revision compared to the earlier Grade system.

What does grade pay mean?

Apart from basic pay, government employees also receive grade pay, which is calculated depending on the category or class of the employee. The total of basic pay and grade pay is used in assessing dearness and other allowances. Any increase or decrease of basic salary can affect an employee’s CTC.

It suggested a 23.55% hike in pay and allowances in all sectors.

What is the Matrix system of Pay scales?

The 7th Pay Commission Pay Matrix is a simple and perspicuous table representing all the pay levels in a single comprehensive chart. Many demands of the government employees who come under the purview of the Seventh Pay Commission were incorporated in the 7th CPC pay matrix. For example, there is standard pay for junior-level employees, transparent pay structure and common treatment of similar cadres.

The 7th pay matrix enables employees to directly view their pay level and also chart the likely path of pay progression. Additionally, the procedures relating to the calculation of pension have also been simplified.

There were five Pay Bands with different scales for all the cadres in the government service. They are as follows:

Table sourced from IIFL securities

1. Level 1 to 5 (Grade Pay 1800 TO 2800)

PB-1 (5200-20200)

GP18001900200024002800
Level12345
11800019900217002550029200
21850020500224002630030100
31910021100231002710031000
41970021700238002790031900
52030022400245002870032900
62090023100252002960033900
72150023800260003050034900
82210024500268003140035900
92280025200276003230037000
102350026000284003330038100
112420026800293003430039200
122490027600302003530040400
132560028400311003640041600
142640029300320003750042800
152720030200330003860044100
162800031100340003980045400
172880032000350004100046800
182970033000361004220048200
193060034000372004350049600
203150035000383004480051100
213240036100394004610052600
223340037200406004750054200
233440038300418004890055800
243540039400431005040057500
253650040600444005190059200
263760041800457005350061000
273870043100471005510062800
283990044400485005680064700
294110045700500005850066600
304230047100515006030068600
314360048500530006210070700
324490050000546006400072800
334620051500562006590075000
344760053000579006790077300
354900054600596006990079600
365050056200614007200082000
375200057900632007420084500
385360059600651007640087000
395520061400671007870089600
405690063200691008110092300

2. Level 6 to 9 (GP 4200 TO 5400)

PB-2 (9300-34800)

GP4200460048005400
Level6789
135400449004760053100
236500462004900054700
337600476005050056300
438700490005200058000
539900505005360059700
641100520005520061500
742300536005690063300
843600552005860065200
944900569006040067200
1046200586006220069200
1147600604006410071300
1249000622006600073400
1350500641006800075600
1452000660007000077900
1553600680007210080200
1655200700007430082600
1756900721007650085100
1858600743007880087700
1960400765008120090300
2062200788008360093000
2164100812008610095800
2266000836008870098700
23680008610091400101700
24700008870094100104800
25721009140096900107900
26743009410099800111100
277650096900102800114400
287880099800105900117800
2981200102800109100121300
3083600105900112400124900
3186100109100115800128600
3288700112400119300132500
3391400115800122900136500
3494100119300126600140600
3596900122900130400144800
3699800126600134300149100
37102800130400138300153600
38105900134300142400158200
39109100138300146700162900
40112400142400151100151100

3. Level 10 to 12 (GP 5400 to 7600)

PB-3 (15600-39100)

GP540066007600
Level101112
1561006770078800
2578006970081200
3595007180083600
4613007400086100
5631007620088700
6650007850091400
7670008090094100
8690008330096900
9711008580099800
107320088400102800
117540091100105900
127770093800109100
138000096600112400
148240099500115800
1584900102500119300
1687400105600122900
1790000108800126600
1892700112100130400
1995500115500134300
2098400119000138300
21101400122600142400
22104400126300146700
23107500130100151100
24110700134000155600
25114000138000160300
26117400142100165100
27120900146400170100
28124500150800175200
29128200155300180500
30132000160000185900
31136000164800191500
32140100169700197200
33144300174800203100
34148600180000209200
35153100185400
36157700191000
37162400196700
38167300202600
39172300208700
40177500

4. Level 13 to 14 (GP 8700 TO 10000)

GP8700890010000
Level1313A14
1123100131100144200
2126800135000148500
3130600139100153000
4134500143300157600
5138500147600162300
6142700152000167200
7147000156600172200
8151400161300177400
9155900166100182700
10160600171100188200
11165400176200193800
12170400181500199600
13175500186900205600
14180800192500211800
15186200198300218200
16191800204200
17197600210300
18203500216600
19209600
20215900

5. Level 15 to 18 (No Grade Pay – HAG Scales)

PB67000-7900075500-800008000090000
Level15161718
1182200205400225000250000
2187700211600
3193300217900
4199100224400
5205100
6211300
7217600
8224100

How to calculate CPC under the Seventh Pay Commission recommendations:

The method of conversion of the pay scale from 6th CPC to 7th CPC is given below in detail as per the recommendation of the 7th pay commission.

Step 1: Check your basic pay (including grade pay) as on 31.12.2015

Step 2: Multiplication by a Fitment factor of 2.57

Step 3: Rounded off to the nearest rupee

Step 4: Go to Matrix Pay Table and select the Level corresponding to Grade Pay.Step 5: Select equal or next higher Pay in the corresponding Matrix Level

Link to download calculator: 7th CPC Pay Calculator Control plus click to follow link)

New scales for HRA under the Seventh Pay commission

New Rates of HRA from July 2021

X Class Cities: 27 per cent of Basic Pay

Y Class Cities: 18 per cent of Basic Pay

Z Class Cities: 9 per cent of Basic Pay

The Hike in Dearness Allowance as per the revised pattern under Seventh Pay commission

The DA was increased from 17% to 28%, with effect from July 2021.

Uttar Pradesh Pensioners and Seventh Pay commission

As many as five lakh beneficiaries will be given pensions per the Seventh Pay Commission in Uttar Pradesh, the state government announced on Monday.

Additional Chief Secretary (Finance) S Radha Chauhan said most pensioners in the category would be from the corporate sector, where the Seventh Pay Commission has not been implemented.

The government approved the revision of the provisional pension of the mentioned category of pensioners on March 6, 2017, as per the mandate of February 12, 2018.

As per the revised mandate, the higher the amount, the more pension will be payable.

Being a government servant has always been a coveted service, and the younger generation is attracted to securing government employment solely for its security and salary. The government, too, is keen on protecting its employees and keeping them in ship shape with timely revision in pay and perks and making service an enjoyable occupation.

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