[ecis2016.org] Here are the major highlights and pay structure under the 7th Pay Commission of India
What is Pay Commission?
The Pay Commission is a central government-appointed administrative system, to study and recommend changes to the salary structure and other benefits applicable to government employees.
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The Pay Commission, which is headquartered in Delhi, is headed by a chairman, who is assisted by senior officials from various fields. The central government may either accept or reject the Pay Commission’s recommendations. State governments generally adopt the Pay Commission’s recommendations, with certain modifications. Since India’s Independence, seven pay commissions have been set up.
7th Pay Commission
The 7th Pay Commission was set up on February 28, 2014, under the UPA government. It submitted its report on November 19, 2015.
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7th Pay Commission: Summary of recommendations
- Minimum wage will start at Rs 18,000 per month.
- The maximum proposed compensation shall be set at Rs 22,50,000.
- Cabinet secretary and other similarly situated apex positions shall have a starting salary of Rs 2,50,000.
- The new Pay Matrix system will take the place of the current Pay Band and Grade Pay systems.
- When determining current pay scales, a multiplier of 2.57 will be properly enforced across all workers, to get the new pay scales.
- The annual increase rate will stay at 3%, same as in the Sixth Pay Commission.
7th Pay Matrix highlights
| Performance-based methodology | Pay for military service | Short service length officers | Pay parity | Assessment |
| ● Performance metrics are made more strict.
● Performance-linked increment mechanism has been recommended. |
● Only Defence Personnel will be eligible to receive Military Service Pay. ● 15,000 for Serving Officers. ● 10,800 for Nursing Officers. ● JCO Price: 5,200 ● 3600 for Air Force Enlisted Non Combatant Personnel. |
● Leaving the military will be permitted between 7 and 10 years after joining.
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● Similar positions will get equal compensation.
● Staff parity between the field and headquarters. |
● Systematic alterations will be made to the Cadre Review for Group A Officers. |
| Remuneration | Advances | Healthcare facilities |
| ● 52 allowances are taken away.
● Allowances associated with Risk and Adversity will be controlled individually. ● The revised monthly Siachen Allowance is as follows: 1. Officers of Service: 31,500 2. JCO and OR: 21,000 |
● Advances without interest are removed.
● Personal Computer Advance and House Construction Advance are preserved. ● The limit for the House Building Advance has been raised to 250,000. ● Central Government Employees Group Benefits Plan. |
● Employee Health Insurance Plan for the Central Government.
● Hospitals empanelled to serve CGHS beneficiaries must provide medical services to retirees living beyond CGHS coverage zones. ● Postal pensioners must be protected. |
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7th Pay Commission: Insurance protection
| Level of worker | Monthly withholding (Rs) | Guaranteed sum (Rs) |
| 10 and above | 5,000 | 50,00,000 |
| 6 to 9 | 2,500 | 25,00,000 |
| 1 to 5 | 1,500 | 15,00,000 |
7th Pay Matrix pension
- Pensions for civilian and military personnel, including CAPF, revised to achieve parity.
- Method for calculating the adjusted pension suggested.
- A slab-based disability element approach for calculating disability pension.
- In the event of death in the line of duty, the rate of compensation to heirs will be revised.
- Recommendations for the reform of NPS for the development of a redress mechanism proposed.
7th Pay Matrix gratuity
- The optimum gratuity has been increased to Rs 20 lakh.
- If the dearness allowance increases by 50%, the maximum gratuity will rise by 25%.
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7th Pay Commission scale of pay for military personnel
According to the 7th Pay Commission’s recommendations, the pay scale for service members will be based on the rank, location, branch, and designation of the officer. The detailed pay structure is shown in the table below:
| Framework | Amount |
| Minimum pay grade for military personnel | Rs 5,400 |
| Pay grade | Rs 15,600 |
| Military service compensation | Rs 6,000 |
| Preventive upkeep | Rs 500 |
7th Pay Commission: Pay scale for central government personnel
| Framework | Amount (per month) |
| Pay scale | Rs 29,900 to Rs 1,04,400 |
| Grade pay | Rs 5,400 to Rs 16,200 |
| Remuneration | Eligibility | Amount |
| Hard terrain allowance | Applicable to personnel assigned to difficult areas | 25% of total monthly basic wage or Rs 6,750 |
| Equipment servicing allowance | Pertinent to all officers | Rs 400 per month |
| Allowance for high-altitude climate | Applicable to officers stationed at altitude | Rs 11,200 to Rs 14,000 monthly |
| Allowance for House Rent | Applies to officials who do not use government-provided housing | 10% to 30% of the officer’s base salary |
| Allowance for Siachen | Applicable to personnel stationed at the Siachen frontier | Rs 11,200 to Rs 14,000 monthly |
| Allowance for transport | Pertinent to all officers | Rs 3,200 is paid for A1 cities and towns, whereas Rs 1,600 is given for all other cities and towns. |
| Allowance for a High Active Field Area | Applicable to personnel who operate in an area with intense field activity | Rs 6,780 to Rs 4,200 per month |
| Allowance for Special Forces | Applicable to special forces officers | Rs 9,000 per month |
| Allowance for modified field area | Applicable to officers stationed in modified field zones | Rs 1,600 per month |
| Allowance for Dearness | Typically 80% of gross pay | |
| Flying Allowance | Expenses for officers of the flying branch | |
| Technical Allowance | Paid to technical branch officials | Rs 2,500 |
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7th Pay Commission pay matrix
| Current pay brands | Current grade pay level | Applicable to | New level |
| PB-1 | 1800 | Civil | 1 |
| 1900 | Civil | 2 | |
| 2000 | Civil, Defence | 3 | |
| 2400 | Civil | 4 | |
| 2800 | Civil, Defence | 5 | |
| PB-2 | 3400 | Defence | 5A |
| 4200 | Civil, Defence | 6 | |
| 4600 | Civil, Defence | 7 | |
| 4800 | Civil, Defence | 8 | |
| 5400 | Civil | 9 | |
| PB-3 | 5400 | Civil, Defence, Military Nursing Service | 10 |
| 5700 | Military Nursing Service | 10A | |
| 6100 | Defence | 10B | |
| 6100 | Military Nursing Service | 10B | |
| 6600 | Civil, Defence, Military Nursing Service | 11 | |
| 7600 | Civil | 12 | |
| PB-4 | 7600 | Military Nursing Service | 12 |
| 8000 | Defence | 12A | |
| 8400 | Military Nursing Service | 12B | |
| 8700 | Civil | 13 | |
| 8700 | Defence | 13 | |
| 8900 | Civil | 13A | |
| 8900 | Defence | 13A | |
| 9000 | Military Nursing Service | 13B | |
| 10000 | 14 | ||
| HAG | 15 | ||
| HAG+ | 16 | ||
| Apex | 17 | ||
| Cabinet secretary, Defence chiefs | 18 | ||
Almost all of the criteria listed above have been included into the latest 7th Pay Commission payment matrix. The pay scales have been standardised and the levels have been reduced. To analyse the current status and development possibilities throughout the course of their careers, government workers may check their current level of pay on the government’s website. In addition, the procedures for calculating pension have been made simpler.
Seventh Pay Commission latest updates
The central government, in March 2022, increased the dearness allowance (DA) for its employees by 3%, from 31% to 34%, effective January 1, 2022. The increase in the DA, which calculated as a percentage of ‘basic pay’ is likely to benefit 68.62 lakh pensioners and 47.68 lakh central government employees.
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