What is a Pay Commission?
A Pay Commission is a governmental body established by the Government of India (GoI) with the purpose of reviewing the existing salary structure for central government employees. It is periodically appointed by the GoI, and during the commission sessions, various stakeholders, including employee representatives, present their respective proposals and demands for adjustments to the pay system. The Pay Commission then deliberates on the proposed changes and determines the suitable revisions that should be incorporated.
What is the 7th Pay Commission?
The 7th Pay Commission, initiated by the UPA Government on 28th February 2014 under the leadership of Justice Ashok Kumar Mathur, proposed several measures. Some of the significant ones included establishing a uniform base pay for entry-level employees, rationalising of the existing grade pay structure, and enhancing transparency within the payment framework. The commission’s significant report, submitted on 19th November 2015, advocated for an increase of 23.55% in wages and allowances for government employees.
Major Takeaways of 7th Pay Commission
- Minimum and Maximum Pay: The Central Pay Commission (CPC) proposed an increase in the minimum pay at the entry level, rising from INR 7,000 to INR 18,000 per month. Additionally, the maximum pay for top-tier positions like Cabinet Secretary was recommended to be INR 2.5 lakhs per month.
- Annual Increment: The rate of annual increment remained consistent at 3%
- Pension Revisions: As the minimum pay scale of Central Government employees has witnessed a substantial hike, the minimum pension has also increased. Therefore, a central government employee’s minimum pension increased from Rs. 3,500 to Rs. 9,000.
- Fitment Factor: To arrive at the new pay scales, a uniform fitment factor of 2.57 was applied to the existing pay of all employees, ensuring fairness and consistency.
- 7th Pay Matrix: The traditional system of pay bands and grade pay was replaced with a new pay matrix, wherein an employee’s status was determined by their level within the 7th pay matrix.
- Gratuity: The upper limit of gratuity was raised from INR 10 lakhs to INR 20 lakhs, providing improved financial security upon retirement.
- Health Insurance Scheme: A notable development was the introduction of a Health Insurance Scheme for both Central Government employees and pensioners.
What is the 7th Pay Matrix?
The 7th CPC Pay Matrix is a structured chart that outlines the salary hierarchy across various pay levels. It was introduced in 2016 to enhance transparency in the salary structure while ensuring uniformity for entry-level employees. The 7th Pay Matrix table comprises 760 cells, catering to a vast workforce exceeding 30 lakh employees.
Each of the 19 columns in the 7th Pay Commission Pay Matrix signifies different pay levels, while the 40 rows correspond to the numerous salary increments an employee may experience throughout a career spanning up to 40 years. This two-dimensional 7th CPC Pay Matrix features a horizontal range labelled from 1 to 18, reflecting distinct functional roles. On the other hand, the vertical dimension signifies ‘pay progression’ within a specific level, further illustrating an annual financial progression of 3.00%. The pay matrix’s foundation lies in the minimum pay established by the 15th Indian Labour Conference (ILC) norms or the Aykroyd formula.
The 7th Pay Commission Pay Matrix was introduced to simplify the new pay scale presentation, so that employees can identify their pay level and anticipate future earnings as their careers advance.
How to Find Pay Level in the 7th Pay Matrix?
To determine their pay level within the 7th CPC Pay Matrix table, a government employee can follow these simple steps:
- Horizontal Range: They should first identify the suitable ‘Pay Band Level’. This will assist in finding the appropriate category that aligns with their job role and experience.
- Vertical Range: Next, they should locate their ‘Grade Pay Level’ within the provided vertical range.
The point where these two ranges intersect corresponds to their designated compensation category (pay matrix level).
Overview of the 7th Pay Matrix Table
|Existing Pay Brands||Existing Level of Grade Pay||Available for*||New Levels|
|Cabinet Secretary, Defence Chiefs||18|
|*C: Civil, D: Defence, M: Military Nursing Service (MNS)|
|LEVEL 1 TO 5 (GRADE PAY 1800 TO 2800)|
|LEVEL 6 TO 9 (GRADE PAY 4200 TO 5400)|
|LEVEL 10 TO 12 (GRADE PAY 5400 TO 7600)|
|LEVEL 13 TO 14 (GP 8700 TO 10000)|
|LEVEL 15 TO 18 (NO GRADE PAY – HAG SCALES)|
H2: How to Access the 7th Pay Matrix PDF?
One can simply visit various government agency sites to obtain the 7th Pay Matrix PDF:
Govtempdiary.com: This website provides comprehensive information about the 7th Pay Commission Pay Matrix specifically designed for civilian employees.
Cgpwajk.in: This website contains the PDF file of the 7th CPC Pay Matrix exclusively for Central Government Employees.
Moreover, the Department of Expenditure, India, which oversees the implementation of the 7th CPC Pay Matrix, not only offers the PDF document but also provides regular updates related to it. For more information, you can explore the dedicated section for the 7th Pay Commission on their official website.
The introduction of the 7th Pay Matrix in 2016 marked a significant transformation in the salary structure for central government employees in India. It enhanced transparency, uniformity, and simplicity in pay scales. The increase in salaries, introduction of health insurance, and improved pension benefits have contributed to enhancing the financial well-being of the employees and their families.