8th Pay Commission, yet to be constituted, has to follow the Pay matrix Table evolved by seventh pay commission in respect of revising Pay Scales and Allowances
The origin of Pay Matrix Table
The 7th Pay Commission evolved a Pay Matrix in a single page tabular format that includes all the Pay Scale and annual increments of 40 lakh Central Government Employees. It is so simple and convenient to fix the Pay on account of Promotion or calculate, check the Basic pay at any stage without any arithmetic calculation.
Hence forth coming pay commission will have no options than just modifying the Pay matrix table for revision pay.
Now the 8th Pay Commission, yet to be constituted, has to follow the methods of seventh pay commission in respect of revising Pay Scales in Pay matrix format.
Already we have assumed that the Fitment Factor might be 1.96 in 8th Pay Commission Read this the report
Accordingly the the cells in all Levels in Pay matrix will be multiplied by 1.96 to arrive Pay matrix for 8th pay Commission. If the 8th Pay Commission decides to go with Pay matrix format for Pay Revision, it will not need much calculation/process for evolving a new format for Pay Scales.
7th Pay Commission pay Matrix and its uniqueness
7th pay commission wanted to simplify the procedure for fixing the pay for Central Government Employees without any calculation. So the Commission had evolved a tabular column with Levels and cells and named it as Pay Matrix
How Pay Matrix Replaced Sixth CPC Pay Structure
At the time of constitution of the VI CPC there were about 35 standard pay scales in existence. Many of these pre revised scales were merged by the VI CPC to arrive at 19 grades spread across four distinct Pay bands along with 4 distinct scales including one Apex scale (fixed) for Secretary/equivalent and one scale for Cabinet Secretary/equivalent (fixed). The concept of Grade pay was intended as a fitment benefit but it also served as a level determiner within a pay band.
Following implementation of the VI CPC recommendations, the pay structure in the Civilian set up consists of four pay bands with 15 levels of grade pay, along with four standalone scales viz., the HAG scale, HAG+ scale, Apex scale (fixed) and the scale of Cabinet Secretary (fixed) as shown below in Table
The sixth CPC pay Scale
The basics of Pay Matrix
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. 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
Pay Matrix Table for Level 1 to 5
The Levels 1 to 5 in Pay Matrix which represents erstwhile Grade pay in PB I are arrived by using IOR 2.57
Pay Band I (5200-20200)
Pay Matrix Table for Level 6 to 9
The pay matrix table for 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)
Pay Matrix Table for Level 10 to 12
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 III (15600-39100)
Pay Matrix for Level 13, 13A and 14
The Pay Matrix for Level 13, 13A and 14 represents erstwhile Grade Pay 8700,8900 and 10000 are calculated by IOR 2.72
Pay Band 4 ( 37400 – 67000 )
Pay matrix for Level 14 and 16
The Levels in pay matrix 14 and 16 are done with IOR 2.72 and 17 , 18 are with IOR 2.81 and 2.78 respectively
In the newly evolved pay matrix for 7th CPC regime, there are 19 levels framed to replace the 19 Grades in Sixth CPC.
Since the this Pay matrix table is user friendly, we expect that 8th Pay Commission will just adopt this for format for pay revision