7th Pay Commission Matrix Table: Updates with Pay Scale

[nikhilchauhan]

The 7th Pay Commission was constituted by the Government of India that recommend the salary structure of central government employees. This commission is also responsible for making changes in the salary structure of defence personnel. This 7th pay commission offers a clear salary structure in all the different pay levels. This 7th pay commission is pioneered by the Indian government to analyze and make the changes in the pay structure.

The central government can check their pay level and their growth level throughout their career. The current 7th Pay Commission matrix decides the level of any employees under the central government. It has been observed that a 23.35% hike in basic pay and allowances of central government employees after the introduction of the 7th Pay matrix was initiated.

This 7th Pay Commission matrix was constructed during the 6th CPC with grade pay multiplied by fitment factor from 2.56 to 2.72 in the structured table. This 7th pay commission matrix was constructed by government of India in 2016. This commission brings transparency in salary structure and pay level for employees.

The minimum pay scale of central government employees starts from 7000 per month to 18000 per month. Due to this rise in the minimum pay scale, pensions also increased effectively. The pension for retired central government employees rises from 3500 per month to 9000 per month.

Benefits of the 7th Pay Commission

• This 7th pay commission recommends an increase in minimum pay and overall salaries for central government employees.
• This 7th pay commission offers clarity on career advancement with annual increments and horizontal movement through promotions.
• This commission marks unequal pay scales between different levels.
• This 7th pay commission provides a simplified system that minimizes the risk of error in pay.
• The pay matrix provides data related to pay progression trends, retirement patterns and promotions in better financial management for the government.
• This commission provides transparency and makes processes easy.
• This 7th pay commission has rectified the difficulties in the pay band in the past.
• This 7th pay commission ensures easy financial management reforms.
• This 7th pay commission has resolved the entry pay issues and fixed the revised pay. This CPC has reduced the difference between various pay bands.

Fitment Factor in 7th Pay

This 7th Pay commission consists of a fitment factor that represents the multiplication factor that is used for calculating revised pay. This 7th pay commission calculates increment of pay for employees whose salary are transferred from 6th CPC pay to 7th CPC pay structure. In the 6th pay commission calculation is made on a single fitment factor is 2.57.

However, under revised pay calculation multiplying fitment factor with existing basic pay is 2.57. Therefore, this 7th pay commission structure gives an increase in employee pay.

Important recommendations of 7th pay commission

• New Pay

The 7th pay commission has introduced a simplified pay matrix that replaced the existing pay bands and grade pay system. This 7th pay commission matrix consists of pay levels from level 1 to level 18 for different positions in the government hierarchy.

• Fitment Factor

This 7th pay commission has a fitment factor of 2.57, which is evenly applied to all employees. In this 7th CPC, basic pay is multiplied by the fitment factor to arrive at revised basic pay.

• Pay Band

This 7th pay commission has structured a minimum pay for government employees at 18000 per month and a maximum of 250000 per month.

• Increment

The 7th pay commission initiates the rate of increment at 3% on the basic pay.

• Allowances

The 7th pay commission matrix recommends various allowances that include HRA which needs to be increased to 24%, 16%, and 8% of basic pay for various cities. In the 7th pay commission dearness allowances have been increased by 4% for government employees.

• Retirement benefits

This commission has an increased pension structure that ensures similarity between previous and current retirees. This commission simplified the calculation with uniformity and clarity.

• Medical benefits

The 7th Pay Commission has recommended that central government employees be allotted wards in private hospitals under CGHS.

FAQ

1. Which authority structures central government employees' pay structure?
Ans: This 7th Pay commission constructs the pay structure of central government employees.

2. What is the Basic pay structure?
Ans: The basic pay structure refers to the salary structure on which the total compensation of an employee is built. This basic pay structure forms the core part of salary and other allowances that are added to such an amount.

To conclude, we can say that the recommendations of the 7th pay commission matrix adopted by the Government of India started on 1st January 2016. This commission implemented an increase in salaries and pensions of central government employees and pensioners. This system aims to increase the living standards of employees and improve their productivity. Therefore, this 7th pay commission has brought transparency and clarity among employees.