7th Pay Commission Pay scales- Bizfoc

Overview 

According to the 7th pay commission (CPC) pay matrix is a table which states the salary structure of the central government employees. This table allows the government employees to know about their salary structure with fairness and transparency while considering the implications of the Indian government. 

This commission was established in 2014, formed by the government-elected body called Pay Commission, under the chairmanship of Justice of Ashok Kumar Thakur, and submitted the report on 19th November 2015 for the implementation in January 2016. 

Under this commission different kinds of allowances were also increased such as Dearness Allowances (DA), House Rent Allowances (HRA), Children’s Education Allowance, etc., were nationalized to provide government employees with better results. This blog discusses the 7th Pay Commission pay matrix, features, and effects. 

What is the 7th Pay Commission Pay Matrix? 

The 7th Pay Matrix is a number table comprising 760 cells, 19 columns, and 40 rows. It is applicable to over 30 lakh central government employees. The matrix table consists of a structure of horizontal and vertical range. The horizontal range mentions the ‘functional position’ and is assigned numbers in 1,2,3,4 and so on till 18. Further the vertical range signifies pay scale corresponding to the functional role. The annual financial progression of 3% increases with the increase in functional role in the hierarchy. 

Key Features of 7th Pay Commission Pay Matrix

Following are the key features of 7th pay commission pay matrix which are as follows:

Benefits of 7th Pay Commission Pay Matrix 

Here’s the list of benefits of 7th pay commission pay matrix, which was implemented in the year of 2016:

1. Simplified way:

The 7th pay commission matrix turned and changed the grade pay and pay bands into a single level. 

2. Health Insurance:

In the 7th pay commission pay matrix, the health insurance has also been announced for the central government employees. 

3. Provide Transparency: 

The 7th pay commission pay matrix provides standardized structure for calculating the salaries, clear provision for increment, and eliminating ambiguity pay scales. 

4. Annual Increment: 

The 7th pay commission pay matrix retains the annual increment of 3% per year. This pay commission helps to ensure a certain planning to achieve financial stability. 

Fitment Factor in 7th Pay Commission Pay Matrix 

The 7th Pay commission has the fitment factor of 2.57 has raised the increment rate upto 3%. The 7th Pay Commission multiplied this figure with the basic pay in 6th CPC regime (Pay in Pay band added with Grade pay) for the purpose of identifying minimum pay in revised pay structure. 

The fitment that the 6th CPC was earlier suggested in the form of grade pay. Yet, due to lack of consistency continuously observed in the assessment of grade pay and in the spacing of pay bands have a direct impact on the quantum of fitment benefit. This lackness leads to demand for a single fitment factor that can be applied for all employees. 

The Overview of 7th Pay Matrix Table for Central Government Employees

Level 1 to 5 (Grade Pay 1800- 2800)

Level 6 to 9 (GRADE PAY 4200 TO 5400)

Level 10 to 12 (Grade Pay 5400 to 7600)

Level 13-14 (Grade Pay 8700 to 10,000)

Level 15 to 18 (No Grade Pay - Hag Scales)

How to read 7th Pay Matrix Table?

Here’s the step -by-step procedures to read 7th pay commission pay, which are as follows:

Step 1: Identify the Level

The 7th Pay Matrix table has 40 rows. Each row represent the salary increments that an employee receives throughout their career up to 40 years. The horizontal range within the table goes, or columns are numbered from 1 to 18, corresponding to the functional role in the hierarchy. This is your ‘Level’. 

Here, the Grade level is level of an employee in which an organisation compensate for the level on various factors such as years of experiences and other determined factors. 

Step 2: Understand Pay Progression

The vertical range signifies ‘pay progression’ within that level. It also displays the annual financial progression of 3 % within each level. 

Step 3: Find Your Cell

Each cell in this table shows a unique pay scale. The table has 760 cells and pertains to more than 30 lakh central government employees.

Step 4: Check the Minimum Pay

The beginning point of the table signifies the minimum pay according to the 15th ILC norms.

Effects of 7th CPC Pay Matrix

On the implementation of 7th CPC pay matrix in January 2016, the expenditure of the government has increased the expenditure on pensions, allowances and salary. The effect of 7th CPC has affected the government employees directly while the non-government employees have indirectly impacted due to increase in national treasury. The following are the list that summed up these expenses below:

The 7th Central Pay Commission Report also mentioned that the budget will be projected from two sources out of this ₹72,650 Crore will be borne by the Central Budget and ₹28,450 Crore will be borne by the Railways Budget for the sum budget of ₹1,02,100. 

Conclusion 

The 7th Pay commission matrix is an important chart to assure the government employees on the basis of the structure of the salary. This pay commission has the fitment factor of 2.57 with the increment range of 3% in the existing employee salary. Under this commission different kinds of allowances were also increased and rendered benefits to the financial stability of the government employees. 

Frequently Asked Questions 

1) How to identify the pay matrix table?

On identification of the matrix table, you can find the suitable ‘horizontal range’ as per the band and look for the grade pay level.

2) When was the 7th pay matrix introduced?

The 7th pay matrix was introduced in the year 2013 and later on implemented in the year January 2016. 

3) What is the increment rate in the 7th Pay Commission?

The increment rate is defined as 3% in 7th pay commission for the central government employees. 

4) Is this commission also based to impact non-government employees?

No, this commission is not based to impact non-government employees. But, the 7th pay commission indirectly benefits the non-government employers through national treasure.