7th Pay Commission Pay Fixation Rules

7th Pay Commission Pay Fixation in the New Pay Structure

Pay fixation in the newly revised pay structure is a one-time option! If an employee is willing to change his/her basic salary from the 6th CPC to the 7th CPC, his/her basic salary will be converted as per the recommendations on the pay fixation methodology.

Pay Fixation Rules in 7th Pay Commission

‘Fitment Factor‘ is one of the most important elements for revising the basic salary from one pay commission to another pay commission. Every pay commission recommends the Fitment Benefit in various methods. The 6th pay commission had recommended the ratio of Fitment Benefit was a single-window format for Central Government employees. 1.86 was recommended the common Fitment Factor to revise the basic salary from 5th to 6th Pay Commission. And the 7th Pay Commission also followed the same methodology and revised the ratio to 2.57.

Fitment Benefit (1.86) Calculation in 6th CPC

7th Pay Commission Pay Fixation Formula

Method of Fixation of Pay as per 7th CPC

• Point 1: Multiple current basic pays (as of 31.12.2015) with a fitment factor of 2.57 and rounded off to the next rupee
• Point 2: Find the Pay Matrix Level in accordance with the Grad Pay
• Point 3: Match the value of Point 1 with the eligible Pay Matrix Level pay hierarchy (equal or higher value)
• Point 4: The selected value is the revised pay as on 1.1.2016

Pay fixation rules have been changed after the implementation of the 7th pay commission. The new rules adopted to all categories of Central Government employees will be regulated as per Central Civil Services (Revised Pay) Rules 2016.

Pay Fixation Example

An employee ‘T’ in GP 4200, drawing pay of Rs. 20,000 in PB-2. The Basic Pay is Rs. 24,200 (20,000+4200).  After multiplying by 2.57, the amount fetched viz., Rs. 62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at Rs. 62,200.

Fitment Factor for CG Employees

The uniform 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 neutralization, assuming that the rate of Dearness Allowance would be 125 per cent at the time of implementation of the new pay.  [Para 5.1.27 in 7th CPC Report]

Dopt Orders on Pay Fixation

The Department of Personnel and Training issued orders and circulars from time to time in various situations regarding the pay fixation on promotion or MACP to Central Govt employees.

Fitment Factor for Defence Personnel

The starting point of a Sepoy (and equivalent), the entry-level personnel in the defence forces, has been fixed in the Defence Pay Matrix at Rs.21,700. The fitment in the new matrix is essentially a multiple factors of 2.57. This multiple is the ratio of the new minimum pay arrived at by the Commission (Rs.18,000) and the existing minimum pay (Rs.7,000). The fitment factor is being applied uniformly to all employees. An identical fitment of 2.57 has also been applied to the existing rates of Military Service Pay (MSP), applicable to Defence forces personnel only [Para 5.2.7 in 7th CPC Report]

Fixation of Pay on promotion in 7th Pay Commission

Staff Side Suggestion on Pay Fixation

Fixation of Pay on promotion: In the case of Promotion from one grade to another in the revised pay structure, the fixation is presently done as under:-

(a) One increment equal to 3% of the sum of the Pay in Pay Band and Grade Pay will be computed and rounded off to the multiple of 10. This will be added to the existing Pay in the Pay Band.

(b) However, the Pay so fixed must not be less than the minimum of the Pay Band to which he is promoted.

 Staff Side suggestion in detail – Click to read full story

Rationalization Applied in the Present Pay Structure

7th CPC Pay Fixation Table

Pay Fixed on the Date of Promotion or Date of Next Increment

Ready reckoner table for fixation of pay on promotion

• VII Pay Fixation Tables: Promoted from Level 1 to 2
• VII Pay Fixation Tables: Promoted from Level 2 to 3
• VII Pay Fixation Tables: Promoted from Level 2 to 4
• VII Pay Fixation Tables: Promoted from Level 4 to 5
• VII Pay Fixation Tables: Promoted from Level 5 to 6

Pay Fixation Rules on Promotion PDF

Pay fixation on Promotion Format Rules

7th CPC Pay Fixation on Promotion or MACP Calculator

The 7th Pay Commission simplified the calculation for arriving at the revised pay through a Pay Matrix. Let us assume you are presently drawing Grade Pay Rs. 4200 and Pay of Rs. 12110 in the Band Pay-2 as on 01.01.2016.
To calculate your revised Basic Pay and Allowance as per 7th CPC, follow the steps given below:

7th CPC Pay Fixation Step 1

• Your 6th CPC Basic Pay ( Grade Pay + Band Pay) is = 4200+12110= Rs. 16310

7th CPC Pay Fixation Step 2

• Multiply your 6th CPC Basic Pay with 7th CPC’s Fitment Formula i.e. 2.57 :- 16310 x 2.57 = Rs.41916.70 ( Paisa to be rounded off to the nearest Rupee) = Rs.41917

7th CPC Pay Fixation Step 3

• Match above figure ( 41917) with Matrix Table ( Given Below) figures assigned in Grade Pay column Rs.4200. There is no matching figure we arrived above in this matrix, so the closest higher figure assigned in the Grade Pay column can be chosen i.e Rs. 42300. So , Rs 42300 is your New 7th CPC Basic Pay.

7th CPC Pay Fixation Step 4 (HRA)

• HRA has been revised as 24%, 16% and 8% for the existing 30% , 20% and 10% respectively. If you are in 30% HRA Bracket at present, your HRA in 7th CPC is 24%. Therefore, your HRA in 7th CPC = Rs. 42300 x 24/100 = Rs.10152.

7th CPC Pay Fixation Step 5 (TPTA)

• 7th CPC recommends Transport Allowance for three Categories of Employees for Two Types of Places. If you are living in A1 and A classified cities (See the List of 19 cities classified as A1 and A cities) you will be entitled to get higher TPTA rates. Since your Grade Pay is 4200 you fall in second category i.e. Grade Pay 2000 to 4800 and your TPTA is Rs. 3600+DA

7th CPC Pay Fixation Step 6 (DA)

• DA will be Zero as on 1.1.2016. So there is no need to calculate the DA to calculate gross pay as on 1.1.2016. Add all the figures :- Your revised 7th CPC Gross pay as on 1.1.2016 = Basic Pay + HRA + TPTA + DA = 42300+10152+3600 = Rs.56052