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7th Pay Commission
The Government of India has set up the Pay Commission to determine the salaries of government employees. Following India's Independence, seven pay commissions have been formed to review and recommend the remuneration of all of the government’s civil and military divisions. On 25 September 2013, then Finance Minister P Chidambaram announced that the constitution of the 7th Pay Commission. It was approved by Dr. Manmohan Singh (Prime Minister of India from 2004 to 2014). The Commission was set up under the chairmanship of Justice Ashok Kumar Mathur. Its recommendations were expected to come into effect from 1 January, 2016, however, due to certain complications, the implementation saw a delay.
In June 2016, the Cabinet cleared all recommendations made by 7th Pay Commission report, which suggested about 23.55% overall hike in salaries, allowances and pension for over 1 crore government employees.
Recommendations of the 7th Pay Commission
Minimum pay for government employees - The minimum pay (recommended) for an entry-level government employee is raised to Rs 18,000 per month from Rs 7,000. The minimum salary for an entry-level Class I officer is raised to Rs 56,100 per month.
Maximum pay for government employees: An increase in the maximum pay for government officials to Rs 2.25 lakhs every month for Apex Scale and Rs 2.5 lakhs every month for Cabinet Secretary and others of the same pay level (from the current pay of Rs. 90,000 per month).
Pay matrix: The status of a government employee to be decided by the level in the new Pay Matrix and not by Grade Pay. To ensure greater transparency, the Commission has recommended replacing the system of grade pay with a new pay matrix.
Work Related Illness and Injury Leave (WRIIL): Sick leave, hospital leave and special disability leave shall be merged into one new leave. This will be referred to as Work Related Illness and Injury Leave. Employees hospitalized because of work-related illnesses and injuries will receive complete pay and allowances.
Fitment: The Commission has recommended a uniform fitment factor of 2.57.
Government officials who fall under pay matrix level 1 to 5 are expected to see an increase in their fitment factor to 3.00 times of the basic pay.
Modified Assured Career Progression (MACP): The Commission has recommended enhancing the benchmark for MACP to 'Very Good' from ‘Good’. It has also proposed that employees who do not meet the benchmark for MACP will not receive annual increments or get promotion for the first 20 years of their service.
Military Service Pay (MSP): The Defence forces personnel shall continue to receive MSP for all ranks up to and including Brigadiers and people at the same level. The recommended MSP per month is as follows:
Designation
Recommended by 7th CPC
Service Officers
Rs. 15,500
Nursing Officers
Rs. 10,800
JCO / ORs
Rs. 5,200
Non-Combatants (enrolled) in the Air Force
Rs. 3,600
Allowances: After examining 197 allowances, the Commission has recommended abolishing 53 allowances and subsuming 37 in others.
Central Government Employees Group Insurance Scheme: The Commission has come up with a revised table of benefits with respect to Central Government Employees Group Insurance Scheme. The revised rates are as follows:
Level of employee
Present monthly deduction
Recommended monthly deduction
Present insurance amount
Recommended insurance amount
10 and above
Rs. 120
Rs. 5,000
Rs. 1,20,000
Rs. 50,00,000
6 to 9
Rs. 60
Rs. 2,500
Rs. 60,000
Rs. 25,00,000
1 to 5
Rs. 30
Rs. 1,500
Rs. 30,000
Rs. 15,00,000
Pension: A revised pension formula has been recommended for employees of civil services, including the Central Armed Police Forces and defence personnel, who have retired before 1 January 2016. This formulation attempts to bring parity between existing pensioners and current retirees.
Disability Pension for Armed Forces: Rather than the present percentile-based disability pension regime, the Commission has recommended executing a slab-based system for disability element.
7th Pay Commission Pay Scale for Central Government Employees
Pay scale for Indian Air Force
The pay scale for Indian Air Force employees will depend on the officer's rank, branch, area of posting and designation. The pay structure is as follows:
Pay structure
Amount payable
Minimum grade pay for Indian Air Force employees
Rs. 5,400
Pay band
Rs. 15,600
Military service pay
Rs. 6,000
Kit maintenance
Rs. 500
Monthly salary of Indian Air Force employees on the basis of their rank
Rank
Monthly salary amount
Flying Officer
Rs. 11,250
Air Commodore
Rs. 13,125
Flight Lieutenant
Rs. 13,750
Squadron Leader
Rs. 17,500
Captain
Rs. 17,500
Wing Commander
Rs. 17,500
Pay scale for Army and Defence Personnel
There is a wide difference in the income structure for defence and civil services. The pay structure for defence personnel comes down to their rank and experience. A 15-scale pay structure has been introduced, abolishing the earlier grade pay system. The pay scale for Indian Army and Defence personnel is as per the following table:
Rank
Pay scale
Grade pay
Lieutenant
Rs. 15,600 - Rs. 39,100
Rs. 5,400
Major
Rs. 15,600 - Rs. 39,100
Rs. 6,100
Captain
Rs. 15,600 - Rs. 39,100
Rs. 6,600
LT Colonel
Rs. 37,400 - Rs. 67,000
Rs. 8,000
Colonel
Rs. 37,400 - Rs. 67,000
Rs. 8,700
Brigadier
Rs. 37,400 - Rs. 67,000
Rs. 8,900
Major General
Rs. 37,400 - Rs. 67,000
Rs. 1,000
Pay scale for Bank Officers
The post and designation determine which pay scale category every employee will come under. While a regular bank clerk earns a basic monthly income of Rs. 11,765, bank managers get a salary of Rs. 45,000 every month.
Pay scale for Border Security Force (BSF)
The 7th Pay Commission shall be implemented for BSF personnel as well. The below table shows the difference in pay scale for different posts in BSF as per the 7th Pay Commission:
Post
Current pay scale
7th Pay Commission pay scale
Constables/Assistant Constables/Assistant Sub Inspector
Pay Band 1 - Rs. 5,200 to Rs. 20,200 per month
Grade Pay - Rs. 1,800 to Rs. 2,800 per month
Pay Band 1 - Rs. 15,600 to Rs. 60,600 per month
Grade Pay - Rs. 5,400 to Rs. 8,400 per month
Servicemen/Servicewomen/Sub Inspector/Major
Pay Band 2 - Rs. 9,300 to Rs. 34,800 per month
Grade Pay - Rs. 4,200 to Rs. 4,800 per month
Pay Band 2 - Rs. 29,900 to Rs.1,04,400 per month
Grade Pay - Rs. 12,600 to Rs. 16,200 per month
From Assistant Commandant up to the rank of Second in Command
Pay Band 3 - Rs. 15,600 to Rs. 39,100 per month
Grade Pay - Rs. 5,400 to Rs. 7,600 per month
Pay Band 3 - Rs. 46,800 to Rs.1,17,300 per month
Grade Pay - Rs. 19,800 to Rs. 22,800 per month
From Commandant up to the rank of Special Director General
Pay Band 4 - Rs. 37,400 to Rs. 67,000 per month
Grade Pay - Rs. 8,700 to Rs. 10,000 per month
Pay Band 4 - Rs.1,12,200 to Rs.1,00,100 per month
Grade Pay - Rs. 26,100 to Rs. 30,000 per month
Pay Scale for Commercial Clerks or Commercial Superintendent
Post
Previous pay
7th Pay Commission pay scale
Commercial Clerks
Rs. 6,500 per month
Rs. 9,300 per month
Commercial Superintendents
Rs. 6,500 to Rs. 10,500 per month
Rs. 9,300 to Rs. 34,800 per month
Senior Commercial Clerk
Rs. 4,000 to Rs. 6,000
Rs. 5,200 to Rs. 20,200 per month
Pay scale for Central Reserve Police Force
The Commission has raised the pay scale of CRPF employees.
Post
Previous pay
7th Pay Commission pay scale
Proposed grade pay
Constable
Up to Rs. 20,200 per month
Up to Rs. 60,600 per month
Rs. 7,200 per month
Head Constable
Rs. 5,200 to Rs. 20,200 per month
Rs. 15,600 to Rs. 60,600
Rs. 9,400 per month
Assistant Sub-inspector
Rs. 5,200 to Rs. 20,200 per month
Up to Rs. 60,600 per month
Rs. 10,400 per month
Sub-inspector
Rs. 9,300 to Rs. 34,800 per month
Rs. 27,900 to Rs.1,04,400 per month
Rs. 12,600 per month
Inspector
Rs. 9,300 to Rs. 34,800
Rs. 27,900 to Rs. 1,04,400 per month
Rs. 13,800 per month
Subedar Major
Not available
Up to Rs.1,04,400 per month
Rs. 14,400 per month
Assistant Commandant
Rs. 15,600 to Rs.39,100 per month
Rs. 46,800 to Rs. 1,17,300 per month
Rs. 16,200 per month
Deputy Commandant
Rs. 15,600 to Rs. 39,100
Rs. 46,800 to Rs. 1,17,300 per month
Rs. 19,800 per month
Second-in Commandant
Rs. 39,100 per month
Rs. 1,17,300 per month
Rs. 22,800 per month
Commandant
Up to Rs. 67,000 per month
Up to Rs. 2,01,100 per month
Rs. 26,100 per month
DIG
Up to Rs. 67,000 per month
Up to Rs. 2,01,000 per month
Rs. 30,000 per month
IG
Rs. 37,400 to Rs.67,000 per month
Rs. 1,12,000 to Rs. 2,01,000 per month
Rs. 35,000 per month
ADG
Rs. 79,000 per month
Up to Rs. 2,25,000 per month
NA
SDG
Rs. 75,500 to Rs. 80,000 per month
Rs. 2,25,000 to Rs. 2,30,000 per month
NA
DG
Up to Rs. 80,000 per month
Rs. 2,50,000 per month
NA
Pay scale for IES employees
At present, the earnings of the Indian Engineering Service Officers are in line with the pay scale set by the 6th Pay Commission. Once the 7th Pay Commission is implemented, IES Officers are expected to earn 2.57 times higher than their current income. The pay scale for each post will be as per the following table:
Post
Experience
Pay scale (basic + grade pay)
Assistant Executive Director
Fresher
Rs. 21,000 per month
Executive Director
3 to 4 years in service
Rs. 22,200 per month
Joint Director
8 years in service
Rs. 23,200 per month
Joint General Manager
13 years in service
Rs. 47,400 per month
Additional General Manager
20 years in service
Rs. 67,000 per month
Senior General Manager
30 years in service
Rs. 80,000 per month
Chairman
34 years in service
Rs. 90,000 per month
At least five states in the country have implemented the recommendations of the 7th Pay Commission and announced hikes for their employees. These include Uttarakhand, Uttar Pradesh, Jammu & Kashmir, Haryana, Madhya Pradesh and Maharashtra. The Maharashtra government has said that it will pay the arrears to its employees under the 7th Pay Commission this year.
August 2018 is set to mark the start of the era of the 7th Pay Commission. The revised remunerations and allowances shall be in force from July’s salaries, which will in turn be paid by August.
