Basics of Pay Matrix of 7th Pay Commission- Insider

Why Pay Matrix is designed for 7th pay commission regime ? How it makes the calculation of pay revision and pay fixation simple ? The 7th pay commission explained the basics of Pay matrix in its report

Basics of Pay matrix and Pay bands

The Commission has designed the new pay matrix keeping in view the vast opportunities that have opened up outside government over the last three decades, generating greater competition for human resources and the need to attract and retain the best available talent in government services. The nomenclature being used in the new pay matrix assigns levels in place of erstwhile grade pay

Prior to VI CPC, there were Pay Scales. The VI CPC had recommended running Pay Bands with Grade Pay as status determiner. The Seventh CPC is recommending a Pay matrix with distinct Pay Levels. The Level would henceforth be the status determiner.

Index of Rationalisation IOR used to differentiate Pay bands

Since the existing pay bands cover specific groups of employees such as PB-1 for Group `C’ employees, PB-2 for Group `B’ employees and PB-3 onwards for Group `A’ employees, any promotion from one pay band to another is akin to movement from one group to the other.

These are significant jumps in the career hierarchy in the Government of India. Rationalisation has been done to ensure that the quantum of jump, in financial terms, between these pay bands is reasonable. This has been achieved by applying ‘index of rationalisation’ from PB-2 onwards on the premise that with enhancement of levels from Pay Band 1 to 2, 2 to 3 and onwards, the role, responsibility and accountability increases at each step in the hierarchy.

Basics of Pay Matrix Rationalisation

The proposed pay structure reflects the same principle. Hence, the existing entry pay at each level corresponding to successive grades pay in each pay band, from PB-2 onwards, has been enhanced by an ‘index of rationalisation’ as shown below in Table

The Levels 1 to 5 in Pay Matrix which represents erstwhile Grade pay in PB I are arrived by using IOR 2.57

7th CPC Pay Matrix PB I (5200-20200)

The pay matrix Levels 6 to 9 which replaced the Grade pay in PB II are arrived by using Index of rationalisation 2.62. See the table below

Pay Band  II      9300-34800

The first cell of Levels from 10 to 12 in Pay Matrix which represents erstwhile Grade pay in PB III are arrived by using IOR 2.67

Pay Band 3     (15600-39100)

The Pay Matrix for Level 13, 13A and 14 represents erstwhile Grade Pay 8700,8900 and 10000 and Level 13 and 13A are arrived by using IOR 2.67 and 14 is calculated with IOR 2.72

Pay Band 4 ( 37400 – 67000 )

The Levels in pay matrix 15 and 16 are done with IOR 2.72 and Levels 17 , 18 are fixed by using IOR 2.81 and 2.78 respectively

HAG Scale

In the newly evolved pay matrix for 7th CPC regime, there are 19 levels framed to replace the 19 Grades in Sixth CPC.

Click here to See the revised 7th CPC pay Matrix with all levels and Cells

The Pay matrix for Defence Personnel