Latest Update on 7th Pay Commission! 1. In a move that will benefit over 1.1 crore central government employees and pensioners, the Centre has hiked the Dearness Allowance by 3 per cent to 12 per cent. The previous DA hike was in August last year when the government had increased it to 9 per cent from 7 per cent. 2. Since the hike comes into effect retrospectively from January 1, the employees will also get arrear for the month of January. Now, the central government employees and pensioner will get Dearness Allowances at the rate of 12 per cent. 3. In a decision that will benefit thousands of academicians, Bihar CM Nitish Kumar has announced to give 7th pay commission salaries to madrassa teachers of the state. 4. The Ministry of Railways has also decided to constitute a Committee for the inclusion of fresh categories within the ambit of Risk and Hardship Allowance. The main function of the committee will be ‘To holistically examine the inclusion of fresh categories within the ambit of Risk and Hardship Allowance introduced by 7th CPC’. 5. To bring the uniformity in the retirement age, the ministry will be increasing the retirement age for the constable to commandant (senior superintendent of police) to 60 years from the present 57 years. Once the recommendations of the 7th Pay Commission are implemented in 2018, pensioners will be the biggest gainers. The 7th Pay Commission pay scale will increase by 16% for currently serving employees, while pensioners will witness a 23.63% rise in their income. The biggest rise, in particular, is the allowances, which will rise by approximately 63%. The 7th Pay Commission pay matrix is a simple table, easy to understand while being predictable and transparent in manner. Government employees directly coming under the purview of the 7th Pay Commission have placed their demands, varying from the common treatment of similar cadres or groups, a standard pay for entry-level employees, enhancement in the frequency of Career Progression, transparency in pay structure and the current grade pay and so on.

1. 7th Pay Commission Pay Matrix

Existing Pay Brands Existing level of Grade pay Available for* New levels
1800 C 1
1900 C 2
2000 C,D 3
2400 C 4
2800 C,D 5
3400 D 5A
4200 C,D 6
4600 C,D 7
4800 C,D 8
5400 C 9
5400 C,D,M 10
5700 M 10A
6100 D 10B
6100 M 10B
6600 C,D,M 11
7600 C 12
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.

2. 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
Type 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
Type Allowances Advances Medical Facilities
  • 52 allowances are abolished
  • Allowances that are related to Risk and Hardship will be separately governed
  • Revised Siachen Allowance per month is as follows:
  • Service Officers: ₹31,500
  • JCO/ ORs: ₹21,000
  • Non-Interest-bearing advances are withdrawn
  • Personal Computer Advance and House Building Advance have been retained
  • The ceiling for House Building Advance has been increased to ₹25,00,000
  • Central Government Employees Group Insurance Scheme
  • Health Insurance Scheme for Central Govt Employees
  • Hospitals empanelled for meeting the needs of people covered under CGHS, shall extend medical facilities to those pensioners residing outside CGHS areas
  • Postal pensioners should be covered under CGHS

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


  • 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 


  • Maximum Gratuity has been enhanced to ₹20 lakhs
  • If Dearness Allowance raises by 50%, maximum gratuity shall be increased by 25%

4. 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:



Minimum grade pay for Defence Personnel


Pay band

Military service pay


Kit maintenance


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

5. Pay Scale for Central Government Employees



Pay scale

Rs.29,900 to Rs.1,04,400 per month
Grade Pay

Rs.5,400 to Rs.16,200 per month


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