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 7th 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 7th 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 7th 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 7th pay commission
Level 10 to Level 18
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 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.
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-
Key Recommendation for the 7th Pay Commission
The following are the key recommendation for the 7th pay commission-
Maximum and Minimum pay for the government employees
As per the 7th 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.
A new Pay Matrix was recommended by the 7th 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.
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.
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|
The commission recommends that the gratuity be increased from Rs.10 Lakhs/- to Rs. 20 Lakhs/-.
There are no proposals for establishing a new 8th pay commission.
1st July of every year is the date of increment wherein the government employee will be provided an increment.
An annual increment of 2.57% has been recommended by the 7th pay commission however, the government has increased the fitment factor to 3.0%.
The minimum recommended wage for the government employee of the central government are Rs.18,000/- which is up from Rs.7,000/-.