The 7th Pay Commission was a body established by the Indian government to establish changes to the salary structure, pensions, and allowances of central government employees. It replaced the older system of pay bands and grade pay with a new pay matrix system, including raising the minimum salary to ₹18,000, a new fitment factor of 2.57, and a revised structure for allowances and pensions.
Features | Details |
Purpose | To update the pay structure and benefits for central government employees and retirees. |
Beneficiaries | 33 lakh central government employees, 14 lakh armed forces personnel, and 52 lakh pensioners |
Key Factors |
|
Fitment Factor | 2.57 |
Dearness Allowance | 55% of the basic salary |
The 7th Pay Commission introduced a simplified pay matrix to revise the salary structure for over 30 lakh central government employees, replacing the 6th CPC. This table includes 19 pay levels (horizontal) starting with the entry-level pay, which increases as we move along the table (vertically), thus highlighting 40 annual increments for each level. Each level reflects a 3% annual financial progression, and the matrix aligns with the 15th ILC norms, ensuring transparency and consistency in salary calculations.
Take a look at the advantages and features of the 7th pay matrix:
Every Central Government employee has been eligible for a minimum pay of Rs.18,000 per month. The cabinet has approved the recommendations to raise the minimum pay, allowing employees to receive a significant hike in their existing salaries.
The fitment factor in the 7th Pay Commission acts as the multiplier used to determine the raise in basic salary of the central government employees, while transitioning from the 6th pay commission. The fitment factor during the 7th pay commission was decided at 2.57. Subsequently, the psalary paid to the pensioners of the central govenmenment will also undergo a respective increase.
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) |
All of the above demands have been incorporated into the new 7th pay commission pay matrix. The grade pay has been taken into consideration and the levels are now rationalised. Government employees can now look up their current pay level and evaluate their current status as well as their growth potential over the years of their career. Procedures have also been made simple for the calculation of pension. Highlights of 7th 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 |
---|---|---|
|
|
|
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 |
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:
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 |
The 7th Pay Commission pay matrix has streamlined the salary structure for central government employees and pensioners, making it more transparent and easy to understand. With its structured progression and standardized increments, it ensures fair compensation and clarity.