7th Pay Commission: Benefiting The Employees of the Central Government

Last Updated at: March 11, 2020
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7th Pay Commission Pay Matrix

Who does not want a hike in their salary? Well, every employed individual wants it. However, unlike the employees working in the corporate and private sector, the employees working in the government sector do not get a pay rise depending on their performance or skills. The government employees get the pay hike and salary perks as decided by the pay commission under the government of India.  This system is responsible for reviewing and providing suitable changes in the salary for government employees accordingly. The domains and sectors for whose salary the pay commission is responsible includes:

  1. Employees under the Central Government

  2. Employees under the All India Services

  3. Officers of the accounts departments

  4. Officers of the supreme court

  5. Personnel employed in the defence forces

 

Depending on the global position and economy of the nation, the 7th pay commission matrix was decided.

  1. 7th pay commission: An overview
  2. What is the 7th pay commission matrix?
  3. Features of 7th pay commission
    1. Minimum pay amount for employees
    2. Maximum pay amount for employees
    3. Annual increment rate
    4. Pay matrix
    5. Fitment factor
    6. Military service pay (MSP)
    7. Allowance
    8. Advances
    9. Medical benefits
    10. Gratuity
    11. Pay based on performance
    12. Disability pension for armed forces
  4. Conclusion

7th pay commission: An overview

With its headquarters in Delhi, the pay commission is modified every 10 years, according to the economic situation and increasing demands of the market, allowing the individuals to cope up with financial stability and upgrade their lifestyle. The pay matrix of the 7th pay commission, as the name suggests is the 7th time the pay matrix is being upgraded since independence, with higher allowances, salary hikes and several other perks. It was set up back in 2014 under Manmohan Singh, however, was brought into effect from July 2019.  The 7th pay commission matrix was finalized by the expert bodies who followed a holistic approach to develop the pay commission providing fair and equal opportunity for progress to all the government employed individuals. 

Get free legal advice now

What is the 7th pay commission matrix?

The 7th pay matrix is the pay commission table under which all the grades and levels are mentioned, through which the employees can check their pay level, along with having an idea of growth potential in the coming years. It is made in order to maintain transparency and simple calculation for the pay structure of the employees.

The 7th pay commission pay matrix pdf can further be downloaded to understand the structure better, and also the pay benefits and hikes being offered to the government sector in which they are employed. 

Features of 7th pay commission

The key features under the 7th pay commission so introduced include the following:

  • Minimum pay amount for employees:

For all the newly recruited employees, there has been a hike in the minimum payment amount from Rs.7,000 to Rs.18,000. For an officer recruited at the Class I level, the minimum pay is Rs.56,100/month.

  • Maximum pay amount for employees:

For the cabinet secretary or the individuals employed at the secretariat level, the maximum payment amount has been increased to Rs.2,50,000.

  • Annual increment rate:

The annual increment rate for all the employed individuals has been retained at 3% every year.

  • Pay matrix:

Unlike the earlier grade pay method, a new method called pay matrix has been introduced through which the status and level of the government employee can be checked.

  • Fitment factor:

A fitment factor of 2.57 has been agreed upon for being applied for all the employed individuals.

  • Military service pay (MSP):

The MSP will now be applicable only to the defence personnel, unlike the earlier pay commission when the MSP was applicable to the officers of all ranks.

  • Allowance:

With a total of 196 allowances, only 37 of them have been retained by the government in the 7th pay commission matrix

  • Advances:

All the advances have been abolished apart from the personal computer advance and house building advance (HBA). The HBA has also been increased from 7.5 lacs to 25 lacs.

  • Medical benefits:

A health insurance scheme has also been introduced by the government for all the employees and the pensioners.

  • Gratuity:

The pay commission has increased the gratuity ceiling from the earlier amount of 10 lacs to 20 lacs.

  • Pay based on performance:

Unlike the earlier days when the employees had to wait for changes and hikes through the pay commission, now appraisals and bonuses will also be provided to the government employee based on the performance.

  • Disability pension for armed forces:

A slab-based system has been implemented for the disability section of armed forces. 

Central Government Employees Group Insurance Scheme (CGEGIS): After 7th pay commission, the recommended rates for Central Government Employees Group Insurance Scheme is as follows: 

Employee Level

Monthly Deduction (Rs) Present Insurance (Rs) Recommended monthly deduction (Rs)

Recommended insurance amount (Rs)

10 and above 120 1,20,000 5000 50,00,000
6 to 9 60 60,000 2500 25,00,000
1 to 5 30 30,000 1500 15,00,000

 

Here, you can read the entire report of 7th Central Pay Commission

Conclusion

As such, various pay scales have been brought into effect for all the government employees at several levels, right from the postman to the secretary officers. Additionally, the 7th pay commission pay matrix level is quintessential to upgrade the financial freedom for the employed individuals with the increased cost of living.

 

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7th Pay Commission: Benefiting The Employees of the Central Government

400

Who does not want a hike in their salary? Well, every employed individual wants it. However, unlike the employees working in the corporate and private sector, the employees working in the government sector do not get a pay rise depending on their performance or skills. The government employees get the pay hike and salary perks as decided by the pay commission under the government of India.  This system is responsible for reviewing and providing suitable changes in the salary for government employees accordingly. The domains and sectors for whose salary the pay commission is responsible includes:

  1. Employees under the Central Government

  2. Employees under the All India Services

  3. Officers of the accounts departments

  4. Officers of the supreme court

  5. Personnel employed in the defence forces

 

Depending on the global position and economy of the nation, the 7th pay commission matrix was decided.

  1. 7th pay commission: An overview
  2. What is the 7th pay commission matrix?
  3. Features of 7th pay commission
    1. Minimum pay amount for employees
    2. Maximum pay amount for employees
    3. Annual increment rate
    4. Pay matrix
    5. Fitment factor
    6. Military service pay (MSP)
    7. Allowance
    8. Advances
    9. Medical benefits
    10. Gratuity
    11. Pay based on performance
    12. Disability pension for armed forces
  4. Conclusion

7th pay commission: An overview

With its headquarters in Delhi, the pay commission is modified every 10 years, according to the economic situation and increasing demands of the market, allowing the individuals to cope up with financial stability and upgrade their lifestyle. The pay matrix of the 7th pay commission, as the name suggests is the 7th time the pay matrix is being upgraded since independence, with higher allowances, salary hikes and several other perks. It was set up back in 2014 under Manmohan Singh, however, was brought into effect from July 2019.  The 7th pay commission matrix was finalized by the expert bodies who followed a holistic approach to develop the pay commission providing fair and equal opportunity for progress to all the government employed individuals. 

Get free legal advice now

What is the 7th pay commission matrix?

The 7th pay matrix is the pay commission table under which all the grades and levels are mentioned, through which the employees can check their pay level, along with having an idea of growth potential in the coming years. It is made in order to maintain transparency and simple calculation for the pay structure of the employees.

The 7th pay commission pay matrix pdf can further be downloaded to understand the structure better, and also the pay benefits and hikes being offered to the government sector in which they are employed. 

Features of 7th pay commission

The key features under the 7th pay commission so introduced include the following:

  • Minimum pay amount for employees:

For all the newly recruited employees, there has been a hike in the minimum payment amount from Rs.7,000 to Rs.18,000. For an officer recruited at the Class I level, the minimum pay is Rs.56,100/month.

  • Maximum pay amount for employees:

For the cabinet secretary or the individuals employed at the secretariat level, the maximum payment amount has been increased to Rs.2,50,000.

  • Annual increment rate:

The annual increment rate for all the employed individuals has been retained at 3% every year.

  • Pay matrix:

Unlike the earlier grade pay method, a new method called pay matrix has been introduced through which the status and level of the government employee can be checked.

  • Fitment factor:

A fitment factor of 2.57 has been agreed upon for being applied for all the employed individuals.

  • Military service pay (MSP):

The MSP will now be applicable only to the defence personnel, unlike the earlier pay commission when the MSP was applicable to the officers of all ranks.

  • Allowance:

With a total of 196 allowances, only 37 of them have been retained by the government in the 7th pay commission matrix

  • Advances:

All the advances have been abolished apart from the personal computer advance and house building advance (HBA). The HBA has also been increased from 7.5 lacs to 25 lacs.

  • Medical benefits:

A health insurance scheme has also been introduced by the government for all the employees and the pensioners.

  • Gratuity:

The pay commission has increased the gratuity ceiling from the earlier amount of 10 lacs to 20 lacs.

  • Pay based on performance:

Unlike the earlier days when the employees had to wait for changes and hikes through the pay commission, now appraisals and bonuses will also be provided to the government employee based on the performance.

  • Disability pension for armed forces:

A slab-based system has been implemented for the disability section of armed forces. 

Central Government Employees Group Insurance Scheme (CGEGIS): After 7th pay commission, the recommended rates for Central Government Employees Group Insurance Scheme is as follows: 

Employee Level

Monthly Deduction (Rs) Present Insurance (Rs) Recommended monthly deduction (Rs)

Recommended insurance amount (Rs)

10 and above 120 1,20,000 5000 50,00,000
6 to 9 60 60,000 2500 25,00,000
1 to 5 30 30,000 1500 15,00,000

 

Here, you can read the entire report of 7th Central Pay Commission

Conclusion

As such, various pay scales have been brought into effect for all the government employees at several levels, right from the postman to the secretary officers. Additionally, the 7th pay commission pay matrix level is quintessential to upgrade the financial freedom for the employed individuals with the increased cost of living.

 

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