Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits
Goods and Services Tax Allowance Committee 7th Pay Commission Income Tax exemption
Central Government abolished various Cesses in the last three years for smooth roll-out of GST Allowances Committee Report and Financial Expenditure Committee on 7th CPC Allowances : FM Press Note Income Tax exemption benefit on Housing Loan Interest (FAQ)

7th Pay Commission Pay Fixation : 7th CPC Pay Fixation with examples

7th Pay Commission Pay Fixation : 7th CPC Pay Fixation with examples

Pay Fixation in the New Pay Structure : The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57.

The figure so arrived at is to be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation, except in cases where the Commission has recommended a change in the existing grade pay. If the identical figure is not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee. A couple of examples are detailed below to make the process amply clear.

The pay in the new pay matrix is to be fixed in the following manner:

Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation. This figure is ‘A’.

Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.

Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level

Example I
i. For example an employee H is presently drawing Basic Pay of Rs. 55,040 (Pay in the Pay Band Rs. 46340 + Grade Pay Rs. 8700 = Rs. 55040). After multiplying Rs. 55,040 with 2.57, a figure of Rs. 1,41,452.80 is arrived at. This is rounded off to Rs. 1,41,453.

ii. The level corresponding to GP 8700 is level 13, as may be seen from Table 4, which gives the full correspondence between existing Grade Pay and the new Levels being proposed.

iii. In the column for level 13, the figure closest to Rs. 1,41,453 is Rs. 1,41,600.

iv. Hence the pay of employee H will be fixed at Rs. 1,41,600 in level 13 in the new pay matrix as shown below:


As part of its recommendations if Commission has recommended any upgradation or downgrade in the level of a particular post, the person would be placed in the level corresponding to the newly recommended grade pay.

Example II
i. Take the case of an employee T in GP 4200, drawing pay of Rs.20,000 in PB-2. The Basic Pay is Rs.24,200 (20,000+4200). If there was to be no change in T’s level the pay fixation would have been as explained in Example I above. After multiplying by 2.57, the amount fetched viz., Rs.62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at Rs.62,200.


ii. However, assuming that the Commission has recommended that the post occupied by T should be placed one level higher in GP 4600. T’s basic pay would then be Rs.24,600 (20000 + 4600). Multiplying this by 2.57 would fetch Rs.63,222.

iii. This value would have to be located in the matrix in Level 7 (the upgraded level of T).

iv. In the column for Level 7 Rs.63,222 lies between 62200 and 64100. Accordingly, the pay of T will be fixed in Level 7 at Rs.64,100.



Fixation of Pay on promotion in 7th Pay Commission – Staff Side suggestion

Fixation of Pay on promotion : In the case of Promotion from one grade to another in the revised pay structure, the fixation is presently done as under:-

(a) One increment equal to 3% of the sum of the Pay in Pay Band and Grade Pay will be computed and rounded off to the multiple of 10. This will be added to the existing Pay in the Pay Band.

(b) However, the Pay so fixed must not be less than the minimum of the Pay Band to which he is promoted.

(c) The individual so promoted will get the Grade Pay assigned to the cadre to which he is promoted.

Exception to the general rule is,
(a) When promotion takes from PB 4 to HAG scale of Rs.67000 – 79000, after adding one increment, pay in the Pay Band and existing Grade Pay will be added. To the figure so arrived at a sum of Rs.2000/- will be added. The pay so fixed is subject to a minimum of Rs.67000 and a maximum of Rs.79000

(b) The promotion from the Grade of Under Secretary/equivalent to the Grade of Deputy Secretary/Equivalent. The pay of the other will be fixed by granting an amount equal to two increments. i.e., 6 % of their Basic Pay. The figure so arrived at, a sum of Rs.1000 i.e., the difference between the Grade Pay of Under Secretary and Deputy Secretary (7600-6600) will be added .

We suggest, the financial benefit on promotion must not be an insignificant amount. In most of the Departments promotion is based upon a qualifying Exam or skill test or effect after very many years of the stipulated residency period in the Feeder Cadre under the Recruitment rules. After undergoing the rigours of the exam/test or after prolonged period of service in the feeder cadre, if the financial benefit is pittance, if only brings about a sense of desperation and frustration. In most of the field formations, the promotions are accompanied by transfer from one place to another. The financial benefit he received on account of promotion officer gets washed away in the increased expenses involved in setting down at another location.

We suggest that the benefit on promotion should be:
“Two increments in the feeder cadre with a stipulation that the amount of benefit so arrived at must not be less than the difference of the minimum of the scale of pay of the feeder cadre and the minimum of the scale of the cadre to which one is promoted.

Stay updated on the go with CENTRAL GOVERNMENT NEWS App. Click here to download it for your device.