7th Pay Commission - Pay Matrix, Salary and Allowances

7th Pay Commission

In the month of July, 2016, AK Mathur headed the Seventh Pay Commission and submitted a report on it to Finance Minister Arun Jaitley. The report suggested a 23.55% hike in pay and allowances of government employees. If the 7th pay commission is implemented, government employees will benefit from a pay hike and other benefits. The Government of India is planning to implement the 7th Pay Commission's recommendations by January 2017. Uttar Pradesh has already approved the 7th Pay Commission and have announced that it will be implemented by January 2017.

Purpose of 7th Pay Commission

The Seventh Pay Commission aims to analyze, review, and recommend changes in the principles governing the emoluments structure for different classes of employees. These include:

1. Central Government employees

1. All India Services personnel

1. Union Territory staff

1. Officers and employees of the Indian Audit and Accounts Department

1. Members of Regulatory Bodies

1. Officers and staff of the Supreme Court

1. Defence Forces personnel

1. Generally, the Commission pays attention to all personnel serving with the Central Government. Its core activities include collecting a complete profile of the size, composition, and profile of Central Government employees.

The main purpose for which the Commission is constituted relates to Pay, Allowances, and Pensions (PAP) which is considered as revenue expenditure.

Seventh Central Pay Commission of India

Employees and staffers of the Central Government in India receive their pay according to the 7th Pay Commission System. After the Union Budget presented on 5 July 2019, central government employees are waiting for an update from the 7th Pay Commission that is generally made every 6 months. This news is related to an increase in their Dearness Allowance (DA). In January 2019, the government had raised the DA for government employees by 3%. Financial experts are now expecting an increase of 5% in the DA.

Key Highlights of 7th Pay Commission

1. Recommended minimum pay for government employees: A newly hired government employee at entry level would now make a minimum salary of Rs.18,000 per month as opposed to Rs.7,000. The minimum pay for a newly hired Class I Officer has been raised to Rs.56,100 per month. 
2. Recommended maximum pay for government employees: The Seventh Pay Commission also recommends to increase the maximum pay 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.
3. Pay Matrix: Considering the issues that exist in the Grade Pay Structure, the 7th Pay Commission has recommended a new pay matrix. Once the 7th Pay Commission is implemented, the status of a government employee will not be decided by Grade Pay but by the level in the new Pay Matrix.
4. New Pay Structure: Ever since Central Government employees heard about the Pay Matrix system, they have questions about their grades and levels. The New Pay Structure recommended by the 7th Pay Commission have included all existing levels and have not introduced any new levels.
5. Work Related Illness and Injury Leave (WRIIL): The Pay Commission recommends full pay and allowances to be granted to all employees who are hospitalised due to WRIIL.
6. Fitment: The 7th Pay Commission recommends a uniform Fitment Factor to eliminate partiality and discrimination in the system. The Pay Commission has recommended a uniform Fitment Factor of 2.57 for all employees.
7. The fitment factor pertaining to the 7th Central Pay Commission is likely to be set at 3.00 times from an earlier 2.57 times. However, in contrast with the recommendations made by the 7th CPC, the employees are currently demanding a hike of 3.68 which essentially increases the fitment factor by three times.
8. Dearness Allowance (DA): In what came as a huge relief to government employees, the Dearness Allowance witnessed a hike of 2% recently. This move/act by the Union Cabinet is said to benefit more than 50 lakh Central Government employees and around 55 lakh pensioners and staffers. This hike was mostly focused on Central Government employees as they are most likely to bear the brunt of factors such as inflation. The raise went straight off to 7% from an earlier 5%.
9. Annual increment: The Pay Commission has suggested to retain the annual increment of 3% p.a.
10. Modified Assured Career Progression (MACP): The 7th Pay Commission aims at improving the quality of services offered by the Government of India and thereby focuses on individual performance. According to the report, performance benchmarks of MACP has been altered and made stricter. They have made the performance indicator stricter by adding “Very good” performance level which was “Good” before. The report goes on to recommend that no annual increments should be given to employees who do not meet their performance level and no promotions will be given if MACP is low for the first 20 years in service.
11. Military Service pay (MSP): The Seventh Pay Commission recommends MSP to be paid for Defence Personnel only. MSP is the compensation paid to people offering military service in India. MSP will be payable for all ranks inclusive of Brigadiers and people at the same level.
12. Allowances: The Cabinet has examined a total of 196 allowances which are currently present and have abolished 51 allowances, retaining 37 allowances.
13. House Rent Allowance (HRA): As the 7th Pay Commission aims at increasing the basic pay of government employees, the Pay Commission has recommended that the House Rent Allowance also increase by 24%. The Commission also states that HRA will increase to 27%, 18%, and 9% when DA (dearness allowance) crosses 50%. HRS will further increase and will be paid at 30%, 20%, and 10% when DA crosses 100%.
14. Advances: Apart from Personal Computer Advance and House Building Advance, 7th Pay Commission has abolished all non-interest bearing advances. It is also noteworthy that House Building Advance has been increased from Rs.7.5 lakhs to Rs.25 lakhs.
15. Central Government Employees Group Insurance Scheme (CGEGIS): The Pay Commission has made some changes to Central Government Employees Group Insurance Scheme. The recommended rates are as follows:

Medical changes: The 7th Pay Commission has recommended a Health Insurance Scheme for Central Government employees and pensioners. The report also recommends cashless medical benefit for pensioners outside CGHS area.

Pension: The Commission recommends changing the current pension system. They propose a new pension formula for civil employees, such as CAPF and military personnel who retired prior to January 1, 2016. The new formula will put an emphasis on achieving balance between current retirees and pensioners. The past pensioners will be placed on the new Pay Matrix system to determine the new pension. The total number of increments a pensioner earned at that level while in active service will later be added, at a rate of 3% annually, to determine the pension amount. The new pension will be equal to 50% of the amount as determined. A pensioner will receive 2.57 times their base pension in the future.

Gratuity: The Commission recommends the ceiling of gratuity to be increased from the current Rs.10 lakh to Rs.20 lakh. They further recommend that the ceiling on gratuity may be raised by 25% when the DA rises by 50%.

Disability Pension for Armed Forces: Instead of the current percentile-based disability pension regime, The Commission has recommended to implement a slab-based system for disability element.

7th Pay Commission pay scale for Central Government Employees

Pay scale and Allowance for Indian Air Force

According to the recommendations made in the 7th Pay Commission, the pay scale for Indian Air Force employees will be based upon the officer's rank, area of posting, branch, and designation. The below table shows the detail pay structure:

They have also revised the allowances paid to Indian Air Force employees. The revised allowance structure is as follows:

Monthly salary of Indian Air Force employees based on their rank

Perks enjoyed by Indian Air Force employees

The Indian Air Force offers its employees a number of benefits, including a pension, housing accommodations, a vehicle based on rank, educational discounts, travel allowances, high-quality healthcare services provided at no cost, and loans at low interest rates. 

Pay scale and Allowance for Anganwadi Workers

Malnutrition among kids is one of the pressing issue in India. To put an end to malnourishment among children, the Government of India recruited local workers to work closely with children and ensure that the government-provided food reaches them. The pay scale for anganwadi workers is the lowest in the government pay structure. They do not have a grade pay system in many states in India apart from Tamil Nadu. However, they receive allowances like:

Apart from the above allowances, they receive certain benefits like 15 days of summer holidays, pension, and PF, depending on the state they are working in. As the pay scale for anganwadi workers differs from state to state, a universal amount cannot be mentioned. Few states that have announced the pay scale of anganwadi workers are Kerala, Andhra Pradesh, and Telangana. The pay scale mentioned by them are:

Pay Scale for Army and Defence Personnel

The pay structure for civil services and defence services differ widely. Revisions have been made to the Indian Army pay scale after the 7th Pay Commission was passed. The pay scale for defence personnel depends on rank and experience. Also, a new 15-scale pay structure has been introduced, eliminating the previous grade pay system. The pay scale for Indian Army and defence personnel are as follows:

Allowance paid to Indian Army Officers

Pay Scale for Assistant Professors

Regardless of their position, every Central and State Government employee will receive a pay raise thanks to the 7th Pay Commission. A raise in pay is also given to assistant professors. According to the impending 7th Pay Commission, assistant professor salaries could range from Rs.46,800 to Rs.1,17,300. It is anticipated that the grade pay will be Rs.19,800. The compensation range for assistant professors was formerly between Rs.15,600 and Rs.39,100, with a grade pay of Rs.6,600. The seventh Wages Commission made no adjustments to entry-level pay. It continues to be Rs.25,530 a month.

Other changes have been made to the allowances that Assistant Professors get in addition to those mentioned above. Based on the city in which they work, the HRA has been enhanced. Depending on the DA of the employees, the increase in HRA may be 24%, 16%, or 8%. If the DA exceeds 50% but falls below 100%, the employee is qualified for HRA.

Pay scale for Assistant Station Master

Assistant Station Master earns a decent salary in the Indian Railway System as they play a crucial role in managing the railway station. The grade pay for Assistant Station Master has been changed as per the recommendations made under the 7th Pay Commission but their basic pay remains the same. The grade pay of Assistant Station Masters is Rs.2,800 per month currently. 7th Pay Commission has recommended the grade pay of Assistant Station Masters to Rs.4,200 per month. However, as there is a debate about eliminating the role of Assistant Station Masters as they do the same job as Station Masters, the revisions suggested is put on hold. For now, they will reap the benefits of the 6th Pay Commission which are as follows:

Pay scale for Associate Professor

With the adoption of the 7th Pay Commission, the Associate Professor pay scale will change as of January 1, 2017. Associate Professors are excitedly anticipating the implementation of the 7th Pay Commission at the start of 2017, as it would significantly alter their pay range. Previously, the Associate Professor's grade pay was Rs.8,900 per month, and their compensation ranged from Rs.37,400 to Rs.67,000. The wage range for assistant professors under the 7th Pay Commission would be between Rs.1 lakh and Rs.2 lakh, with a grade pay of Rs.27,000 per month. 52 lakh pensioners and roughly 47 lakh assistant professors are expected to gain from this proposal, according to reports.

Pay scale for Bank Officers

Pay scale for each employee is different as it depends on their post and designation. While an ordinary bank clerk draw a basic monthly salary of Rs.11,765, bank managers draw a monthly salary of Rs.45,000.

Pay scale for Probationary Officer

Currently, a Probationary Officer in a bank draws a base salary of Rs.14,500 per month apart from the Dearness Allowance of Rs.12,781 and House Rent Allowance of Rs.1,087. Going by this calculation, the total salary earned by a Probationary Officer is Rs.28,368 per month. If the 7th Pay Commission is implemented, the pay scale of a Probationary Officer will be as follows:

Please note:

1. SBI pays Probationary Officers four increments during the first few years. For this reason, the starting salary in SBI still remains to be Rs.6,000.
2. The salary for a Probationary Officer depends on the post and the place they work in and hence can vary from one employee to another.

Pay scale for other bank employees

Pay scale for BPCL employees

Bharat Petroleum Corporation Limited (BPCL) is an Indian state-owned oil refining and distributing company in India. BPCL operated two large refineries in Mumbai and Kochi. It is also listed in the Fortune Global 500 of the world’s biggest corporations in the year 2016. BPCL employees are paid according to their post and contribution. The pay scale for an executive, who is the lowest in rank and order can range anywhere between Rs.24,900 to Rs.50,500 per month which is an handsome pay for the last level in the management. On the other hand, Managing Director draws about Rs.80,000 to Rs.1.25 lakhs per month.

It is a misconception that BPCl employees fall under the government's salary norms. Seventh Pay Commission does not affect the pay structure of BPCL employees. A separate pay revision committee decides the pay scale of BPCL employees. Currently, the pay scale for BPCL employees are as follows:

Pay scale for Border Security Force (BSF)

BSF troops will also be subject to the 7th Pay Commission. The 6th Pay Commission's pay structure currently governs the BSF's pay system. All BSF employees, from constables to assistant sub inspectors, are paid according to pay band 1. The grade pay goes from Rs. 1,800 to Rs. 2,800 per month, while the pay band 1 salary scale runs from Rupees. 5,200 to Rs.20,200 per month. Please see the following table for the 7th Pay Commission's differences in pay scale for the various BSF posts:

Apex Pay Scale of BSF

BSF Officers who are of the rank of Deputy General were getting paid according to the Apex Scale and drew a monthly salary of Rs.80,000. The 7th Pay Commission has revised the Apex Scale and have increased it to about Rs.2.4 lakh.

Pay Scale for BSNL Employees

BSNL employees get paid based on their role and designation. Number of years in the service also matters. BSNL or Bharat Sanchar Nigam Limited is one of the largest telecommunications companies in India employing millions of employees all over the country. Unfortunately, BSNL employees will not benefit if the 7th Pay Commission is implemented as BSNL has flat-out refused to increase the salary of their employees. However, they have increased their House Rent Allowance by 10% to 20% depending on the area they work. Currently, the pay scale of BSNL is as follows:

However, the 7th Pay Commission has revised the pension rules for BSNL employees. Addressing the concern among pensioners and their families who retired before June 2013, the 7th Pay Commission Committee has stated that 50% Dearness Allowance will be extended to these pensioners along with their basic pension amount.

Pay scale for CISF or Central Industrial Security Force

While many government workers are pleased with the reforms brought about by the 7th Pay Commission, the CISF is not happy with the results. The Central Industrial Security Force operates in a difficult atmosphere day and night. They work very hard on everything from VIP arrangements and border security to Naxal operations and rescue efforts. Disappointingly, the 7th Pay Commission decided to keep the CISF's pay structure at the same level as civil pay. For paramilitary soldiers, they have offered an Apex amount of Rs. 80,000. In addition, they have pledged to build 13,072 homes and more than 113 camps in 68 Indian cities and towns. By the end of 2017, it is anticipated that the construction will be finished. They have also altered their wage structure in a few ways. Paramilitary soldiers only receive 15 days of leave, compared to the Indian Army's 20 days and the Jawans' 30 days. The amount of CISF leaves may be increased by the 7th Pay Commission.

Pay Scale for Commercial Clerks or Commercial Superintendent

For personnel working for Indian Railways, modifications have been made under the 7th Pay Commission. The pay range for commercial clerks was Rs.6,500 per month, and the pay scale for commercial superintendents was Rs.6,500 to Rs.10,500 per month, according to the 6th Pay Commission. According to the 6th Pay Commission, a Senior Commercial Clerk would receive anything from Rs.4,000 to Rs.6,000. Commercial Superintendents would receive between Rs.9,300 and Rs.34,800 per month, while Senior Commercial Clerks will receive between Rs.5,200 and Rs.20,200 per month under the 7th Pay Commission.

Pay Scale for Commercial Clerks or Commercial Superintendent in a nutshell

Pay scale for CRPF

The 7th Pay Commission has increased the pay scale of CRPF employees. CRPF is one of the largest police force in central armed police forces in India. CRPF has around 15 ranks in the department and the 7th Pay Commission has agreed to increase the pay scale for all the ranks.

Pay scale for Gram Dak Sevak GDS BMP Employees

GDS is currently regarded as a separate agent within the postal service, and they are primarily situated in rural locations. They are paid by a Time Related Continuity Allowance and put in roughly 4 or 5 hours every day. They also require a second job to make ends meet. The compensation scale for BMP staff has seen some revisions, though, according to the 7th Pay Commission. The monthly gross salaries for 3 hours, 3 hours and 30 minutes, 4 hours, 5 hours, and 6 hours are respectively 6, 012, 7, 008, 8, 015, and 10, 019.

Pay scale for IAS Officers

IAS Officers will receive triple the pay if the 7th pay Commission is enacted, just as many other divisions. IAS Officers are being compensated in accordance with the modifications made by the 6th Pay Commission. IAS Officers' pay will begin in 2017 in accordance with the recommendations made by the 7th Pay Commission. From Rs.15,600 to Rs.39,100 per month to Rs.29,900 to Rs.1,04,400 per month, the pay scale will rise. Also, the grade pay would rise from Rs.5,400 to Rs.16,200 per month.

Perks extended to IAS Officers are:

1. HRA
2. DA
3. Travel Allowance
4. EPF
5. Government vehicle with red siren
6. Accommodation
7. Water bills
8. 2 to 4 years study leave
9. Abroad education
10. Phone and electricity bills
11. Office vehicles and more

Pay scale for IES employees

The post of Indian Engineering Service Officer is one of the most highly-paid designation in India. Currently, IES Officers are paid as per the pay scale set by the 6th Pay Commission. The pay scale however varies from one post to another. It also depends on the number of years the employee has been in service. Generally, for the entry level or for the post of Junior Works Manager, the basic monthly salary can range anywhere between Rs.9,300 to Rs.34,800 per month, depending on the role and experience. Assistant Public Prosecutor and Investigator receive grade 1 pay of Rs.9,300 to Rs.34,800 per month which is without grade pay. The basic pay for Senior Level Officers, Senior Public Prosecutor, and Deputy Superintendent earn a basic pay anywhere between Rs.15,600 and Rs.39,100 per month. If the 7th Pay Commission is implemented, IES Officers will earn 2.57 times more than their current pay. The pay scale for each post will be as follows:

Other perks and allowances enjoyed by IES Officers are:

1. 119% of Dearness Allowance
2. Travel Allowance
3. Government provided accommodation of HRA
4. Medical benefits
5. Children’s education expenses
6. Pension
7. Electricity bills, phone bills, and water bills

Pay scale for IFS Officers

Indian Foreign Service officer is one of the reputable posts in India. Their pay scale is equivalent to that of an IAS Officer. The pay for IFS Officers has been revised under 7th Pay Commission. The previous grade pay received by IFS Officials are as follows:

Perks and allowances for IFS Officers

1. 2BHK accommodation in India
2. A car
3. If posted abroad, he/she will get a 3BHK accommodation, a car, and a minimum salary of Rs.2.4 lakhs per month
4. Medical expenses
5. Electricity, water, and phone bills
6. House Rent Allowance
7. Dearness Allowance
8. Travel Allowance
9. Pension and more

Pay scale IPS Officers

The position an IPS officer holds affects their pay. The band system determines how much they are paid. Junior Time Scale employees who are classified as Band-III are paid between Rs.15,600 to Rs.39,000 per month with a grade pay of Rs.5,400. In contrast, Senior Time Scale employees make between Rs.15,600 and Rs.39,100 a month, with a grade pay of Rs.6,600. Junior Administrative employees are paid between Rs.15,600 and Rs.39,100 per month, with a grade salary of Rs.6,600.

Depending on the position and number of years of experience, IPS are also paid under the Super Time Scale. Under the Super Time Scale, there are two different types of pay. One has a grade pay of Rs.8,900 and is between Rs.37,400 and Rs.67,000, while the other has a grade pay of Rs.10,000 a month and is between Rs.37,400 and Rs.67,000.

IPS Officers also receive other perks like medical allowance, travel allowance, electricity bills, water bills, and accommodation.

Pay scale for IRS Officers

The salary for IRS Officers depend on the rank they hold and their experience. They get paid according to the changes made by the Pay Commission. Apart from their basic salary and grade pay, they also receive various benefits like travel allowance, dearness allowance, government provided accommodation, or house rent allowance. The basic pay for the entry level in IRS that is for Assistant Commissioners is fixed between Rs.15,600 to Rs.39,100 per month with a monthly grade pay of Rs.1,400. The basic pay and the grade pay increases for every post and the highest pay under IRS is for Principal Chief Commissioner of the IT Department who gets a fixed pay of Rs.80,000 per month. Currently, the pay scale for IRS Officers are as follows:

Pay scale for Indo Tibetan Border Police Force (ITBP)

ITBP Officers are the ones who guard about 3,488 kms of Indo-China border for the country. They are also involved in rescue operations. Most of the officers who work in this department as well-educated about living in mountains. Just like other departments, ITBP department also gets paid according to the post they hold and the number of years they have been in service. An entry level in ITBP is Constables and they get a basic pay of Rs.8,460 per month. The highest paid position in ITBP is for Director General who gets a fixed amount of Rs.80,000 per month. Under the 7th Pay Commission, the salary for ITBP is expected to increase greatly. They have also changed the retirement age from 57 years to 60 years. The 7th Pay Commission will also give more perks and allowances. Currently, according to the 6th Pay Commission, the pay scale for ITBP is as follows:

Other perks received by ITBP are :

1. They get High Altitude Allowance
2. Admissibility, quantum, and commutation
3. Gratuity
4. Ex-gratia payment
5. Leave encashment facility
6. Dearness allowance
7. City Compensatory Allowance
8. Detachment Allowance
9. Medical Allowance
10. Travel Expense Compensation
11. Free Ration Services and more

How will you calculate your new pay?

According to the website of the 7th Pay Commission, one can compute their total salary/pay package by following the simple instructions given below:

1. The Basic Pay amount along with your Pay Band with Grade Pay needs to be entered as a first step.
2. By following the 7th CPC recommendations, choose your transport allowance, city, and the percentage of your current House Rent Allowance.
3. In the final step, click on the ‘’Calculate’’ button. This in turn will give you a revised amount of your salary in compliance with the 7th Pay Commission. You will also get a revised HRA, conveyance allowance, Index level, and so on.