7^th Pay Commission

Pay Commission is a commission set by the Government of India to evaluate the Government Employee salary and other HR-related issues.

The first commission on such matters named the pay commission was established in the year 1947 right after the independence to establish a fair pay index for government employees.

The pay commission is a recommendation-providing entity and does not have any binding effect on the Government to implement the advice.

The 7^th pay commission has recently made its recommendation public which has changed the pay matrix for the government employee.

There is an increase of 14.3% in basic pay for the government employee and pensioners and when combined with the Tax benefit, the overall government employee benefits are very attractive.

If you are a government employee or you are trying your luck with a Government job, then the details related to the pay commission might provide you with information.

In this article, we will discuss the 7^th pay commission, the pay matrix, and much more.

What is Seventh Pay Commission?

Seventh Pay Commission is the 7th edition of the pay commission. It is basically a commission set up by the government to recommend any salary hike or HR-related matters to the Government of India.

This commission provides recommendation which is non-binding in nature meaning the Government may or may not implement the recommendation provided by the Commission.

This commission comprises various Government employees, ex-employees, and senior officers of the Government of India. Seventh Pay Commission has various members with a chairman heading them. The Chairman of the event pay commission is Justice Shri Ashok Kumar Mathur and other notable members of this commission are Shri Vivek Rae (Member), Dr. Rathin Roy (Member), and Smt. Meena Agarwal (Secretary).

Pay Matrix as per the 7^th pay commission

Pay Matrix is a matrix table with 18 levels used for the calculation of the salary of the Government employee. The following is the pay matrix for the 7^th pay commission

GP	1800	1900	2000	2400	2800	4200	4600	4800	5400
Level	1	2	3	4	5	6	7	8	9
1	18000	19900	21700	25500	29200	35400	44900	47600	53100
2	18500	20500	22400	26300	30100	36500	46200	49000	54700
3	19100	21100	23100	27100	31000	37600	47600	50500	56300
4	19700	21700	23800	27900	31900	38700	49000	52000	58000
5	20300	22400	24500	28700	32900	39900	50500	53600	59700
6	20900	23100	25200	29600	33900	41100	52000	55200	61500
7	21500	23800	26000	30500	34900	42300	53600	56900	63300
8	22100	24500	26800	31400	35900	43600	55200	58600	65200
9	22800	25200	27600	32300	37000	44900	56900	60400	67200
10	23500	26000	28400	33300	38100	46200	58600	62200	69200
11	24200	26800	29300	34300	39200	47600	60400	64100	71300
12	24900	27600	30200	35300	40400	49000	62200	66000	73400
13	25600	28400	31100	36400	41600	50500	64100	68000	75600
14	26400	29300	32000	37500	42800	52000	66000	70000	77900
15	27200	30200	33000	38600	44100	53600	68000	72100	80200
16	28000	31100	34000	39800	45400	55200	70000	74300	82600
17	28800	32000	35000	41000	46800	56900	72100	76500	85100
18	29700	33000	36100	42200	48200	58600	74300	78800	87700
19	30600	34000	37200	43500	49600	60400	76500	81200	90300
20	31500	35000	38300	44800	51100	62200	78800	83600	93000
21	32400	36100	39400	46100	52600	64100	81200	86100	95800
22	33400	37200	40600	47500	54200	66000	83600	88700	98700
23	34400	38300	41800	48900	55800	68000	86100	91400	101700
24	35400	39400	43100	50400	57500	70000	88700	94100	104800
25	36500	40600	44400	51900	59200	72100	91400	96900	107900
26	37600	41800	45700	53500	61000	74300	94100	99800	111100
27	38700	43100	47100	55100	62800	76500	96900	102800	114400
28	39900	44400	48500	56800	64700	78800	99800	105900	117800
29	41100	45700	50000	58500	66600	81200	102800	109100	121300
30	42300	47100	51500	60300	68600	83600	105900	112400	124900
31	43600	48500	53000	62100	70700	86100	109100	115800	128600
32	44900	50000	54600	64000	72800	88700	112400	119300	132500
33	46200	51500	56200	65900	75000	91400	115800	122900	136500
34	47600	53000	57900	67900	77300	94100	119300	126600	140600
35	49000	54600	59600	69900	79600	96900	122900	130400	144800
36	50500	56200	61400	72000	82000	99800	126600	134300	149100
37	52000	57900	63200	74200	84500	102800	130400	138300	153600
38	53600	59600	65100	76400	87000	105900	134300	142400	158200
39	55200	61400	67100	78700	89600	109100	138300	146700	162900
40	56900	63200	69100	81100	92300	112400	142400	151100	151100

 Level 10 to Level 18

GP	5400	6600	7600	8700	8900	10000	67000-79000	75500-80000	80000	90000
Level	10	11	12	13	13A	14	15	16	17	18
1	56100	67700	78800	123100	131100	144200	182200	205400	225000	250000
2	57800	69700	81200	126800	135000	148500	187700	211600	–	–
3	59500	71800	83600	130600	139100	153000	193300	217900	–	–
4	61300	74000	86100	134500	143300	157600	199100	224400	–	–
5	63100	76200	88700	138500	147600	162300	205100	–	–	–
6	65000	78500	91400	142700	152000	167200	211300	–	–	–
7	67000	80900	94100	147000	156600	172200	217600	–	–	–
8	69000	83300	96900	151400	161300	177400	224100	–	–	–
9	71100	85800	99800	155900	166100	182700	–	–	–	–
10	73200	88400	102800	160600	171100	188200	–	–	–	–
11	75400	91100	105900	165400	176200	193800	–	–	–	–
12	77700	93800	109100	170400	181500	199600	–	–	–	–
13	80000	96600	112400	175500	186900	205600	–	–	–	–
14	82400	99500	115800	180800	192500	211800	–	–	–	–
15	84900	102500	119300	186200	198300	218200	–	–	–	–
16	87400	105600	122900	191800	204200	–	–	–	–	–
17	90000	108800	126600	197600	210300	–	–	–	–	–
18	92700	112100	130400	203500	216600	–	–	–	–	–
19	95500	115500	134300	209600	–	–	–	–	–	–
20	98400	119000	138300	215900	–	–	–	–	–	–
21	101400	122600	142400	–	–	–	–	–	–	–
22	104400	126300	146700	–	–	–	–	–	–	–
23	107500	130100	151100	–	–	–	–	–	–	–
24	110700	134000	155600	–	–	–	–	–	–	–
25	114000	138000	160300	–	–	–	–	–	–	–
26	117400	142100	165100	–	–	–	–	–	–	–
27	120900	146400	170100	–	–	–	–	–	–	–
28	124500	150800	175200	–	–	–	–	–	–	–
29	128200	155300	180500	–	–	–	–	–	–	–
30	132000	160000	185900	–	–	–	–	–	–	–
31	136000	164800	191500	–	–	–	–	–	–	–
32	140100	169700	197200	–	–	–	–	–	–	–
33	144300	174800	203100	–	–	–	–	–	–	–
34	148600	180000	209200	–	–	–	–	–	–	–
35	153100	185400	–	–	–	–	–	–	–	–
36	157700	191000	–	–	–	–	–	–	–	–
37	162400	196700	–	–	–	–	–	–	–	–
38	167300	202600	–	–	–	–	–	–	–	–
39	172300	208700	–	–	–	–	–	–	–	–
40	177500	–	–	–	–	–	–	–	–	–

Calculation of the Salary of the Government Employee

Like any other organization, Government employee salary is also calculated similarly. The formula used for the calculation of the salary is as follows-

Gross pay = Basic pay + HRA + DA + medical + conveyance + other allowances

Dearness Allowance or DA

Dearness Allowance is the cost-of-living allowance that an employee earns. The cost of living is increasing day by day hence, employers pay a Dearness Allowance to enable the employee to cope with the rising inflation.

Transport Allowance

Transport Allowance is the allowance provided to government employees to reach the office to work. You can find out whether this is provided to you by communicating with HR or by checking your salary slip.

Children’s Education Allowance

The children of the employee’s education are taken care of by the government under the Children’s Education Allowance.

Travelling Allowance

Government employees who are in fieldwork are required to travel a lot hence, the government provides a traveling allowance for such visits.

House Rent Allowance

House rent is a huge expense that one must bear hence, the House rent allowance is provided to Government employees under this allowance. You can find the House rent allowance pdf table from the following download link-

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Key Recommendation for the 7^th Pay Commission

The following are the key recommendation for the 7^th pay commission-

Maximum and Minimum pay for the government employees

As per the 7^th pay commission, an entry-level government employee would make an entry-level salary of a minimum of Rs.18,000 per month which was previously Rs.7,000/-. The newly hired Class-1 officer has been raised to Rs.56,100/- per month.

The maximum salary for government employees to Rs.2.25 lakhs per month for Apex Scale and Rs.2.5 lakhs per month for Cabinet Secretary and others working at the same level.

Pay Matrix

A new Pay Matrix was recommended by the 7^th pay commission replacing the existing Grade Pay Structure. In this matrix, the status of the government employee will not be decided by the grade pay but by the level in the level in the new pay matrix.

Work-Related Illness and Injury Leaves (WRILL)

The pay commission recommends full pay and allowance should be granted who are hospitalized due to WRILL. A uniform fitment factor is recommended of 2.57 however, it is likely that the fitment factor will be increased to 3.0.

Dearness Allowance

Recently, dearness allowance has been hiked by 2% which came as a huge relief to the 50Lakhs plus government employees and pensioners in the Central Government.

Annual Increment

The pay commission suggested an annual increment of 3% shall be maintained.

Military Service Pay (MSP)

The seventh pay commission recommended a Military personal-only compensation payment for his/her service to the nation. MSP will be payable to all the ranks and officers of defense forces.

House Rent Allowance (HRA)

The rate of house rent allowance per month as a percentage of basic pay is 24%, 16%, and 9% for X, Y, and Z cities respectively. The list of X, Y, and Z cities is available in the House Rent Allowance table PDF provided to download above.

Modified Assured Career Progression (MACP)

The performance benchmarks of MACP have been altered and made stricter. A new performance level indicator has been added by adding “Very Good” to the performance indicator matrix.

There will be no annual increment if the performance level is not satisfactory also, the promotion will also be not given if the MACP is low for the first 20 years in the service.

Central Government Employees Group Insurance Scheme (CGEGIS)

The recommended rate of the Central Government Employees Group Insurance Scheme is as follows-

Level of employee	Present monthly deduction in Rupees	Present insurance amount in Rupees	Recommended monthly deduction in Rupees	Recommended insurance amount in Rupees
10 and above	Rs.120	Rs.1,20,000	Rs.5000	Rs.50,00,000
6 to 9	Rs.60	Rs.60,000	Rs.2500	Rs.25,00,000
1 to 5	Rs.30	Rs.30,000	Rs.1500	Rs.15,00,000

Gratuity

The commission recommends that the gratuity be increased from Rs.10 Lakhs/- to Rs. 20 Lakhs/-.

FAQ