7th Pay Commission Report: Ministry of Finance 7th CPC

By K Balaji|Updated : August 25th, 2022

The 7th Pay Commission announcement of the hike in DA and DR is an incentive for family and central government pensioners. The 7th pay commission will be effective from January 1, 2022.

This post discusses how the 7th Central Pay Commission will prove profitable to 50 lakh government employees and 65 lakh pensioners in India.

Table of Content

 

7th Pay Commission - Overview

The 7th Central Pay Commission was established on February 8, 2014. Every ten years, the Central Government appoints a Pay Commission to review the pay structure of Central Government employees.

The Pay Commission provides recommendations after assessing our country's economic situation and available resources. Because this is not a constitutional body, the Central Government has the authority to accept or reject the recommendations.

7th Pay Commission Latest News in 2022

The Indian central Government has declared a hike in dearness allowance (DA) for central government employees. As per the 7th Pay Commission Latest News Today 2022, the hike has increased by 3% to 34% from 31% earlier. It started on January 1, 2022.

  • The hike in DA will not only be helpful for the central government employees but also benefit the central Government and family employees getting a pension from the Government.
  • The 7th Pay Commission Latest News for Pensioners is that they will be receiving a hike in the form of Dearness Relief (DR).
  • The news also stated that the combined impact on the exchequer on account of both DA and DR would be Rs.9,544.50 crore per annum.
  • It will be profitable for about 47.68 lakh Central Government employees and 68.62 lakh pensioners, according to the 7th Pay Commission News.

Highlights of the 7th Pay Commission Central Government

  • The Government established the Pay Matrix 7th Pay Commission, chaired by Justice Ashok Kumar Mathur, during the UPA government's tenure.
  • On November 19, 2015, seven other members from various fields submitted a report.
  • Their recommendations went into effect on January 1, 2016. This report focuses on the structure of payments, allowances, and service conditions for individuals serving in the Armed Forces.

Main Points of the 7th Pay Commission

New Pay Matrix

  • The 7th Central Pay Commission has recommended dissolving existing Pay Bands and Grade Pay instead of introducing a new pay matrix.
  • This recommendation has received the Central Government's approval.

Basic Pay

  • The starting salary will be ₹18,000 (for newly recruited officers).
  • On the other hand, a newly recruited class 1 officer will be paid ₹56,100.
  • This salary structure has a compression ratio of 1:3.12, which means that an officer's salary is three times that of a low-level entrant.

Increment Rates

  • The 7th Central Pay Commission has decided to maintain the increment rate at 3%.
  • Therefore, employees will benefit in the long run from higher basic pay because they will receive an annual increment of 2.57 times greater than they do now.

New Structure

  • The Central Government has approved the Rationalization Index and collectively offered a minimum pay at each Pay Matrix level based on responsibility, accountability, and increasing role per hierarchy.
  • There were previously several levels of pay structure; a new structure absorbed all of these.

Recommendations for Advance to Build a House

  • The Cabinet has approved the recommendation of the 7th Pay Commission Central Government to raise the ceiling on House Building Advance from 7.50 lakh to 25 lakh.
  • However, the Cabinet has retained four interest-free advances to alleviate the burden, such as TA on transfer or tours.
  • The 7th Pay Commission Central Government has approved a 3% increase in Dearness Allowance (DA).
  • With the recent increase, DA will now account for 34% of the basic income.

7th Pay Commission 2020 & 2021

Due to the widespread coronavirus pandemic between these years, the government froze the hike in DA or DR from January 1, 2020, to June 30, 2021.

  • The government decided to restore the DA/DR from July 1, 2021, and the hike was around 28% from 17%.
  • The increase in DA from 17% to 28% absorbed extra instalments that began on January 1, 2020, July 1, 2020, and January 1, 2021, orders issued by the Department of Expenditure.
  • The rate of dearness allowance from January 1, 2020, to June 30, 2021, stayed at 17%.
  • In Diwali 2022, the government hiked the DA by 3% and the current rate of 28% of the basic pay and allowance.
  • It made the DA/DR to 31% for central government employees and was considered a Diwali gift.

Proposals of the 7th Pay Commission 2021

The 7th Pay Commission gave many recommendations. It included maximum pay for government employees, a new pay matrix, work-related illness and injury leave (WRIIL, and a constant fitment factor.

The recommended Military Service Pay (MSP) per month is as listed below:

Designation

Recommended By 7th Pay Commission

Non-Combatants (enrolled) in the Air Force

Rs. 3,600

JCO / ORs

Rs. 5,200

Nursing Officers

Rs. 10,800

Service Officers

Rs. 15,500

7th Pay Commission Pay Ranking for Central Government Employees

The 7th Pay Commission Pay Scales structure is given below for the Central Government Departments working in CRIS under Indian Railways.

Staff

7th Pay Commission Pay Scales

Supporting Staff – I

Pay Matrix Level 4 (25500-81100)

Supporting Staff – II

Pay Matrix Level 6 (35400-112400)

Supporting Staff – III

Pay Matrix Level 6 (35400-112400)

Supporting Staff – IV

Pay Matrix Level 6 (35400-112400)

7th Pay Commission HRA Table

Following the hike of Dearness Allowance to 28%, the rates of HRA also improved to 9%, 18%, and 27% based to the category of cities and towns. Given below are the previous and the revised HRA Calculation after 7th Pay Commission.

Pre-Revised Rates

Revised Rates

Level

Basic Pay

24%

16%

8%

27%

18%

9%

1

18000

4320

2880

1440

4860

3240

1620

2

19900

4776

3184

1592

5373

3582

1791

3

21700

5208

3472

1736

5859

3906

1953

4

25500

6120

4080

2040

6885

4590

2295

5

29200

7008

4672

2336

7884

5256

2628

6

35400

8496

5664

2832

9558

6372

3186

7

44900

10776

7184

3592

12123

8082

4041

8

47600

11424

7616

3808

12852

8568

4284

9

53100

12744

8496

4248

14337

9558

4779

10

56100

13464

8976

4488

15147

10098

5049

7th Pay Commission Matrix

The 7th Pay Commission Pay Matrix has been a simple and easily understandable table which is also predictable and transparent. The stakeholders interacted with the 7th Pay Commission to place their demands.

Below is the 7th Pay Commission Pay Matrix Table for employees of the Central Government:

1. Level 1 to Level 5 - Grade Pay 1800 to 2800

Below is the brief report about the 7th Pay Commission Salary Slab from Rs.1800 to Rs.2800.

PB-1 (5200 to 20200)

GP

1800

1900

2000

2400

2800

Level

1

2

3

4

5

1

18000

19900

21700

25500

29200

2

18500

20500

22400

26300

30100

3

19100

21100

23100

27100

31000

4

19700

21700

23800

27900

31900

5

20300

22400

24500

28700

32900

6

20900

23100

25200

29600

33900

7

21500

23800

26000

30500

34900

8

22100

24500

26800

31400

35900

9

22800

25200

27600

32300

37000

10

23500

26000

28400

33300

38100

11

24200

26800

29300

34300

39200

12

24900

27600

30200

35300

40400

13

25600

28400

31100

36400

41600

14

26400

29300

32000

37500

42800

15

27200

30200

33000

38600

44100

16

28000

31100

34000

39800

45400

17

28800

32000

35000

41000

46800

18

29700

33000

36100

42200

48200

19

30600

34000

37200

43500

49600

20

31500

35000

38300

44800

51100

21

32400

36100

39400

46100

52600

22

33400

37200

40600

47500

54200

23

34400

38300

41800

48900

55800

24

35400

39400

43100

50400

57500

25

36500

40600

44400

51900

59200

26

37600

41800

45700

53500

61000

27

38700

43100

47100

55100

62800

28

39900

44400

48500

56800

64700

29

41100

45700

50000

58500

66600

30

42300

47100

51500

60300

68600

31

43600

48500

53000

62100

70700

32

44900

50000

54600

64000

72800

33

46200

51500

56200

65900

75000

34

47600

53000

57900

67900

77300

35

49000

54600

59600

69900

79600

36

50500

56200

61400

72000

82000

37

52000

57900

63200

74200

84500

38

53600

59600

65100

76400

87000

39

55200

61400

67100

78700

89600

40

56900

63200

69100

81100

92300

2. Level 6 to Level 9 - Grade Pay 4200 to 5400

Have a look on the 7th Pay Commission Salary from Rs.4200 to Rs.5400.

PB-2 (9300 to 34800)

GP

4200

4600

4800

5400

Level

6

7

8

9

1

35400

44900

47600

53100

2

36500

46200

49000

54700

3

37600

47600

50500

56300

4

38700

49000

52000

58000

5

39900

50500

53600

59700

6

41100

52000

55200

61500

7

42300

53600

56900

63300

8

43600

55200

58600

65200

9

44900

56900

60400

67200

10

46200

58600

62200

69200

11

47600

60400

64100

71300

12

49000

62200

66000

73400

13

50500

64100

68000

75600

14

52000

66000

70000

77900

15

53600

68000

72100

80200

16

55200

70000

74300

82600

17

56900

72100

76500

85100

18

58600

74300

78800

87700

19

60400

76500

81200

90300

20

62200

78800

83600

93000

21

64100

81200

86100

95800

22

66000

83600

88700

98700

23

68000

86100

91400

101700

24

70000

88700

94100

104800

25

72100

91400

96900

107900

26

74300

94100

99800

111100

27

76500

96900

102800

114400

28

78800

99800

105900

117800

29

81200

102800

109100

121300

30

83600

105900

112400

124900

31

86100

109100

115800

128600

32

88700

112400

119300

132500

33

91400

115800

122900

136500

34

94100

119300

126600

140600

35

96900

122900

130400

144800

36

99800

126600

134300

149100

37

102800

130400

138300

153600

38

105900

134300

142400

158200

39

109100

138300

146700

162900

40

112400

142400

151100

151100

3. Level 10 to Level 12 - Grade Pay 5400 to 7600

Read the Pay Scale 7th Pay Commission applicable from Level 10 to Level 12, where the highest grade pay is Rs.7600.

PB-3 (15600 to 39100)

GP

5400

6600

7600

Level

10

11

12

1

56100

67700

78800

2

57800

69700

81200

3

59500

71800

83600

4

61300

74000

86100

5

63100

76200

88700

6

65000

78500

91400

7

67000

80900

94100

8

69000

83300

96900

9

71100

85800

99800

10

73200

88400

102800

11

75400

91100

105900

12

77700

93800

109100

13

80000

96600

112400

14

82400

99500

115800

15

84900

102500

119300

16

87400

105600

122900

17

90000

108800

126600

18

92700

112100

130400

19

95500

115500

134300

20

98400

119000

138300

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

-

-

4. Level 13 to Level 14 - Grade Pay 8700 to 10000

PB-4(37400 to 67000)

GP

8700

8900

10000

Level

13

13A

14

1

123100

131100

144200

2

126800

135000

148500

3

130600

139100

153000

4

134500

143300

157600

5

138500

147600

162300

6

142700

152000

167200

7

147000

156600

172200

8

151400

161300

177400

9

155900

166100

182700

10

160600

171100

188200

11

165400

176200

193800

12

170400

181500

199600

13

175500

186900

205600

14

180800

192500

211800

15

186200

198300

218200

16

191800

204200

-

17

197600

210300

 

18

203500

216600

-

19

209600

-

-

20

215900

-

-

No Grade Pay - Hag Scales

Level 15 to Level 18

PB

67000-79000

75500-80000

80000

90000

Level

15

16

17

18

1

182200

205400

225000

250000

2

187700

211600

-

-

3

193300

217900

-

-

4

199100

224400

-

-

5

205100

-

-

-

6

211300

-

-

-

7

217600

-

-

-

8

224100

-

-

-

7th Pay Commission J&K

Below is the complete information about the new pay scale structure of J&K State Government employees for Level-1 to Level-5.

Grade Pay

1800

1900

2100

2300

2400

2800

Pay Matrix Level 1

Pay Matrix Level 2

Pay Matrix Level 3A

Pay Matrix Level 3B

Pay Matrix Level 4

Pay Matrix Level 5

1

18000

19900

25300

25400

25500

29200

2

18500

20500

26100

26200

26300

30100

3

19100

21100

26900

27000

27100

31000

4

19700

21700

27700

27800

27900

31900

5

20300

22400

28500

28600

28700

32900

6

20900

23100

29400

29500

29600

33900

7

21500

23800

30300

30400

30500

34900

8

22100

24500

31200

31300

31400

35900

9

22800

25200

32100

32200

32300

37000

10

23500

26000

33100

33200

33300

38100

11

24200

26800

34100

34200

34300

39200

12

24900

27600

35100

35200

35300

40400

13

25600

28400

36200

36300

36400

41600

14

26400

29300

37300

37400

37500

42800

15

27200

30200

38400

38500

38600

44100

16

28000

31100

39600

39700

39800

45400

17

28800

32000

40800

40900

41000

56800

18

29700

33000

42000

42100

42200

48200

19

30600

34000

43300

43400

43500

49600

20

31500

35000

44600

44700

44800

51100

21

32400

36100

45900

46000

46100

52600

22

33400

37200

47300

47400

47500

54200

23

34400

38300

48700

48800

48900

55800

24

35400

39400

50200

50300

50400

57500

25

36500

40600

51700

51800

51900

59200

26

37600

41800

53300

53400

53500

61000

27

38700

43100

54900

55000

55100

62800

28

39900

44400

56500

56700

56800

64700

29

41100

45700

58200

58400

58500

66600

30

42300

47100

59900

60200

60300

68600

31

43800

48500

61700

62000

62100

70700

32

44900

50000

63600

63900

64000

72800

33

46200

51500

65500

65800

65900

75000

34

47600

53000

67500

67800

67900

77300

35

49000

54600

69500

69800

69900

79600

36

50500

55200

71600

71900

72000

82000

37

52000

57900

73700

74100

74200

84500

38

53600

59600

75900

76300

75400

87000

39

55200

61400

78200

78600

78700

89600

40

56900

63200

80500

81000

81100

92300

7th Pay Commission Notes PDF

Pay matrix table defines the basic salary of an individual Central Govt employee. The pay matrix table has 19 columns and 40 rows full of structured pay hierarchy for more than 33 lakh employees. To read , click here to download the 7th Pay Commission Pay Matrix PDF.

Download 7th Pay Commission PDF

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FAQs on 7th Pay Commission

  • The 7th Central Pay Commission, formed in February 2014, showcases the declarations and layout of compensations of all central government civilian employees including defence forces in India.

  • As per the recommendations of the 7th Pay Commission, the new grade pay scale for a fresher (who is a Government employee) will be in the range of ₹7,000 to ₹18,000 per month as basic pay.

  • As per the 7th Pay Commission, the basic pay calculation is typically 40% of gross income or 50% of an individual's CTC. Gross pay minus total allowances equal basic salary, including medical insurance, HRA, DA, conveyance, etc.

  • As per the recommendation of the 7th Pay Commission, pension for total disability is at 30% of the last drawn salary, or ₹3510 per month. If the disability is less than 100%, there will be a reduction.

  • Through the 7th Pay Commission, the Finance Minister has proposed a 3% annual raise for all salaried employees to retain them.

  • The salary of some of the Lieutenant in Indian Army after 7th Pay Commission are as follows:

    • VCOAS/ Army Cdr/ Lieutenant General (NEGS) (Level 17) - INR 2,25,000/- (Fixed).
    • Indian Army Lieutenant General Salary (level 15) - INR 1,82,200/- – INR 2,24,100/-.
    • Indian Army Lieutenant Colonel Salary (level 12) - INR 1,21,200/- - INR 2,12,400/-.
    • Indian Army Lieutenant Salary (level 10) - INR 56,100/- – INR 1,77,500/-.
    • Lieutenant General - INR 1,82,200.
    • Lieutenant Colonel - INR 1,30,600.

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