Index of Rationalisation Applied in 7th CPC Pay Structure

Index of Rationalisation Applied in 7th CPC Pay Structure

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.

Also read: Pay matrix with Distinct Pay Levels for Civil, Defence and MNS

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.

Rationalisation Applied in the Present Pay Structure

PAY BAND – 1 (5200- 20200)
Grade Pay
1800 1900 2000 2400 2800
Current Entry Pay
7000 7730 8460 9910 11360
Rationalised Entry Pay (2.57)
7000*(2.57)
=18000
7730*(2.57)
=19900
8460*(2.57)
=21700
9910*(2.57)
=25500
11360*(2.57)
=29200
PAY BAND – 2 (9300-34800)
Grade Pay
4200 4600 4800 5400
Current Entry Pay
13500 17140 18150 20280^
Rationalised Entry Pay (2.62)
13500*(2.62)
=35400
17140*(2.62)
=44900
18150*(2.62)
=47600
20280*(2.62)
=53100
Pay Band 2 (9300-34800)
Grade Pay 4200 4600 4800 5400
Current Entry
Pay
13500 17140 18150 20280^
Rationalised
Entry Pay (2.62)
13500*(2.62)
=35400
17140*(2.62)
=44900
18150*(2.62)
=47600
20280*(2.62)
=53100
Pay Band 3 (15600-39100)
Grade Pay 5400 6600 7600
Current Entry
Pay
21000 25350 29500
Rationalised
Entry Pay (2.67)
21000*(2.67)
=56100
25350*(2.67)
=67700
29500*(2.67)
=78800
Pay Band 4 (37400-67000)
Grade Pay 8700 8900 10000
Current Entry Pay 46100 49100 53000
Rationalised Entry Pay (2.57/2.67/2.72) 46100*(2.57)
=118500
49100*(2.67)
=131100
53000*(2.72)
=144200
HAG (67000-79000)
Current Entry Pay 67000
Rationalised Entry Pay (2.72) 67000*(2.72)
=182200
HAG+ (75500-80000)
Current Entry Pay 75500
Rationalised Entry Pay (2.72) 75500 *(2.72)
=205400
Apex 80000 (fixed)
Rationalised Pay (2.81) 80000*2.81
=225000
Cabinet Secretary 90000 (fixed)
Rationalised Pay (2.78) 90000*2.78
=250000

 In the existing system no entry pay has been prescribed at the level of GP 5400 (PB-2). Therefore a logical figure has been interpolated here based on the fitment table issued by Government of India post VI CPC recommendations.

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