7th CPC Fitment Formula and Pay Fixation in the New Pay Structure

The Fitment Formula recommended by 7th CPC is 2.57

This fitment factor of 2.57 is recommended and to be applied uniformly for all employees

Actual hike in the basic pay is 14.29 %

7th CPC Fitment Formula and Pay Fixation

5.1.27 The starting point for the first level of the matrix has been set at ₹18,000. This corresponds to the starting pay of ₹7,000, which is the beginning of PB-1 viz., ₹5,200 + GP 1800, which prevailed on 01.01.2006, the date of implementation of the VI CPC recommendations. Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006.

This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. It includes a factor of 2.25 on account of DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay. Accordingly, the actual raise/fitment being recommended is 14.29 percent.

Pay Fixation in the New Pay Structure

5.1.28.  The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57. The figure so arrived at is to be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation, except in cases where the Commission has recommended a change in the existing grade pay.

If the identical figure is not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee. A couple of examples are detailed below to make the process amply clear.

5.1.29 The pay in the new pay matrix is to be fixed in the following manner: Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on the date of implementation.

This figure is ‘A’. Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’. Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of ‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level.

Example I

i. For example an employee H is presently drawing Basic Pay of ₹55,040 (Pay in the Pay Band ₹46340 + Grade Pay ₹8700 = ₹55040). After multiplying ₹55,040 with 2.57, a figure of ₹1,41,452.80 is arrived at. This is rounded off to ₹1,41,453.

ii. The level corresponding to GP 8700 is level 13, as may be seen from Table 4, which gives the full correspondence between existing Grade Pay and the new Levels being proposed.

iii. In the column for level 13, the figure closest to ₹1,41,453 is ₹1,41,600.

iv. Hence the pay of employee H will be fixed at ₹1,41,600 in level 13 in the new pay matrix as shown below

7th cpa pay fixation
7th CPC Fitment Formula and Pay Fixation in the New Pay Structure

Example II
i. Take the case of an employee T in GP 4200, drawing pay of ₹20,000 in PB-2. The Basic Pay is ₹24,200 (20,000+4200). If there was to be no change in T’s level the pay fixation would have been as explained in Example I above. After multiplying by 2.57, the amount fetched viz., ₹62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at ₹62,200.

ii. However, assuming that the Commission has recommended that the post occupied by T should be placed one level higher in GP 4600. T’s basic pay would then be ₹24,600 (20000 + 4600). Multiplying this by 2.57 would fetch ₹63,222.

iii. This value would have to be located in the matrix in Level 7 (the upgraded level of T).

iv. In the column for Level 7 ₹63,222 lies between 62200 and 64100. Accordingly, the pay of T will be fixed in Level 7 at ₹64,100.

Annual Increment 

Annual Increment in Seventh Pay commission remains same. 3% of Basic Pay has been recommended as Annual Increment. But calculation of Annual Increment ..[ Continue Reading ]

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10 thoughts on “7th CPC Fitment Formula and Pay Fixation in the New Pay Structure”

  1. R. Somasundaram

    JCM has failed to put forth the greviences of retired persons. The fitment formula suggests by the govt. Is very lower. I hope the secretaries in the govt may look into the matter for sanction of good fitment formula of 3.7 at the earlier.

  2. The details of CHILDREN EDUCATION ALLOWANCE may be high lighted .casual leave limit is not increased

  3. If I consider my present salary =1 and DA 125%=1.25
    Than total=2.25(Basic+DA)

    Add 12% on 2.25 =2.57
    So friend’s only 12% increase
    is there

    And 6% HRA deduction has considered

    So actual increase in salary is 12% increase and 6% decrease= 6% increase

    That’s the 7th Pay commission
    for us
    is equivalent to half yearly DA increase

  4. DINESH SACHAN MES

    Sir if in the 7th cpc DA is nil in 1-1-2016 then what wll be DA of jan 2016. Thanks

  5. Fitment Factor 2.57 should be used for all grades uniformly. Yes. The anomaly in entry Pay vs Pay fixation will continue in this pay commission also

  6. As per table 5 (Pay matrix of civilian employees) of report submitted by CPC index for various pay scales are different (like 2.57, 2.62, 2.67 etc.)

    So the question is – 1) If one is having pay of 15600 & G.P. of 5400 (i,e, basic=21000) in earlier scale, then what will be the multiplying factor for pay fixation in new scale – 2.57 or 2.67 ?

    2) If the multiplying factor is 2.57 then the one having basic 21630 (Pay-16230, G.P.-5400) in the said scale will be fixed at a basic of 56100 (As 21630*2.57=55589). How is it being possible that one having 1.5 years experience & one fresh candidate who is joining is getting same salary ?

    Please reply to my query.

  7. Looking at the 7cpc recommendation, it seems that it has been designed to boost the real estate sector. Not much increase for any level of employees (Group A to Group C/D). Recommendation is eye catching because of matrix and various statistics. Not much difference between the 6th pay gross pay and that of 7th pay gross pay. Also, govt has indirectly interfered in the process before the submission of 7th pay report.

    Effect of this budget will be conservative spending, and austerity drive and RECESSION.

  8. The central government wants the employees to work like private employees, starting biometric attendance system, keeping weekly hour counts. But does not pay them like the people in private organisations are paid.
    They are giving group A officers so much hike and group C and D barely 23%, whereas they are the most needy ones. The C and D group employees are the ones that suffer the most because of inactivity and inability to make decisions by Group A. The officials of Group A , in autonomous bodies, create more and more posts for their cadre while not working on DPC and MACP files of cadres below them, the ones who actually need the monetary benefits, the actual work force. They have, in autonomous bodies , kept employees posted as ad-hoc for almost 10 years, and did not regularize their post, thus affecting their promotion and salaries, and in turn, their family and their basic necessities. How do they expect people to be happy with a meagre 23% hike, when in private sector, this much hike is an annual affair, and still they want us to work as hard as private workers, and for as many hours. A annual incremant of 3% is the reason why the educates class of India does not venture into government jobs and stays away as far as required. This pay commission, and in turn, the BJP led government, may be good for the nation, but not for government employees. It may also be seen that even though the maximum black money deposited abroad is either by private officials, or by group A governments, still because of that, the group C and DD employees have suffered and are still suffering. If you cannot bring back black money, at least don’t make the lower officials suffer, after all, the recruiting officers who had recruited the people stashing black money were not from group C or DD, but the likes of group A officers. Disappointed in this government. Poor man has always been poor and this pay commission has only increased the gap between rich and poor. Makes me regret the day I chose this government job over a private one.

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