When we get promotion or MACP , one increment and the difference between existing Grade Pay and Promotional grade pay would be granted on account of Pay Fixation in the Pre revised Pay. We used to get one increment plus Grade Pay difference as the benefit of Promotion in Sixth Pay Commission.
Pay Fixation method for Promotion in 7th CPC
But 7th Pay Commission recommended one increment to be granted as the benefit of Promotion in that same level and then the individual will be upgraded to next higher Pay Level in the Pay Matrix. Here after the hierarchy of the Grade Pay will be called as Level 1 to Level 18. How much increase we will get other than this one increment is depends on the Cell we are Placed in higher Level in New Pay Matrix .
7th Pay Commission gave an Illustrative Example in Respect of Pay Fixation on Promotion in New pay Matrix
* Suppose Ms. ABC, who , after having been fixed in the Pay Matrix , is drawing a Basic pay of Rs. 28700 in Level 4.
She is upgraded to Level 5 (either regular promotion or through MACP). Then her salary will be fixed in the following manner
1. She will first be given one increment in her current Level 4 (to ₹29,600 in this case).
2. Then she will be placed in the Level 5 at a Level equal to or next higher compared to ₹29,600, which comes to ₹30,100 in this case.
Calculation for Annual Increment in 7th Pay Commission
Annual Increment in seventh Pay commission remains same. 3% of Basic Pay has been recommended as Annual Increment. But calculation of Annual Increment differs in a way that Pay matrix has been evolved. . [ Continue Reading ]