7th Pay Commission Pay Scale for Different Government Employees
After a certain period, the Central Government engages the Pay Commission to revise the salary structure of around 5.5 million Central Government employees. Since Independence, the Central Government has set up 7 Pay Commissions (latest one) that review and recommend changes in the emolument structure of defence and civil personnel of the Government of India.
Want to know more about Pay Commission and, more importantly, the latest 7th Pay Commission? Read along!
Table of Contents
What is the Pay Commission?
A Pay Commission is an administrative system and mechanism of the Central Government that reviews and examines existing salary structure and recommends changes (in pay, allowances, benefits, bonuses and other facilities) for civil employees and military forces.
Additionally, a Pay Commission reviews rules regarding bonuses after assessing employees' performances and productivity. The Pay Commission also examines existing pension schemes and other retirement benefits.
The Pay Commission recommends only after evaluating our country's economic condition and accessible resources. This Commission primarily focuses on Central Government employees.
What is the 7th Pay Commission?
As stated, around 7 Pay commissions have been set up since 1947. The latest, i.e., the Seventh Pay Commission, was set up on 8th February 2014. The Central Government forms a Pay Commission every ten years to revise the pay structure of Central Government employees.
The government provides an 18-month window (from the date of its constitution) for submitting a recommendation via a report. This Commission may send interim reports on any matter after the finalisation of recommendations. Since this is not a constitutional body, the Central Government may accept or reject recommendations. However, the State Government usually implements recommendations after certain modifications.
What Are the Key Highlights of the 7th Pay Commission?
The 7th Pay Commission in India introduced several significant reforms to revise government employees' salary structure. Here are the key highlights of it:
- The Government set up 7th Pay Commission during the rule of the UPA government under the chairmanship of Justice Ashok Kumar Mathur.
- There were 7 other members from different fields who collectively submitted a report on 19th November 2015.
- Their recommendations came into effect from 1st January 2016. This report focuses on the emoluments structure, allowances and conditions of services of individuals engaged in Armed Forces.
- The Ministry of Finance, under the Union Cabinet chaired by PM Narendra Modi, approved revised recommendations on allowances further on 28th June, 2017 which shall come into effect from 1st of July. 2017.
Features of 7th Pay Commission
The 7th Pay Commission in India introduced notable features. These features addressed salary disparities and improved overall compensation while considering economic factors and government fiscal constraints.
Here is a list of features of the 7th Pay Commission:
New Pay Matrix
The 7th Pay Commission has recommended dissolving existing Pay Bands and Grade Pay instead of introducing a new Pay Matrix. The Central Government approved this recommendation. Previously, authorities determined the status of an employee by grade pay, which the level will evaluate in the Pay Matrix from now on. They designed several Pay Matrixes for different groups such as Defense Personnel, Civilians, Military Nursing Services. The objective of organizing various Pay Matrixes is the same.
Minimum Pay
Instead of earning ₹7,000 per month, a newly employed entry-level government employee would suddenly be paid a minimum salary of ₹18,000. A newly engaged Class I Officer would now receive a monthly minimum wage of ₹56,100.
Rate of Increment
The 7th Pay Commission revamped the increment rate for government employees, introducing a uniform % annual increment of 3% for all employees. This adjustment aimed to simplify the increment process and ensure consistent salary growth across various pay levels.
New Structure
Previously there were several levels at pay structure; a new structure subsumed all of these. The Central Government has approved the Index of Rationalization and collectively decided to offer a minimum pay in each level of Pay Matrix based on responsibility, accountability and increasing role as per hierarchy.
House Building Advance
Cabinet has approved the recommendation of 7th Pay Commission to raise the ceiling of House Building Advance from ₹7.50 lakh to ₹25 lakh. Further, to reduce the burden, the Cabinet has retained four interest-free advances such as TA on transfer or tour, TA for the deceased employee's family, and advances for medical treatment. However, all other interest-free advances are not functional anymore.
Monthly Contribution
The 7th Pay Commission recommended raising the amount of monthly contribution towards the Central Government Employees Group Insurance Scheme (CGEGIS). However, the Cabinet did not accept this recommendation and decided to keep the rate at the existing amount. Thus, the net salary of employees will increase by ₹1470. Additionally, the Cabinet has proposed to the Finance Ministry to introduce a customized group insurance scheme for personnel engaged with the Central Government with high-risk cover and low premium.
Fitment Factor
Fitment factor is one of the main features of 7th Pay Commission. Here, a fitment factor of 2.57 will be applicable in all levels of Pay Matrices. After considering DA, the salary or pension of Government employees or pensioners will increase at least 14.29% from 1st January 2016.
Subsuming of Allowances
The Commission has suggested completely doing away with 52 allowances. An additional thirty-six allowances were eliminated as distinct entities and replaced with either newly proposed allowances or an existing allowance. Given the rise in basic pay and the potential for future increases based on changes in DA, it was advised that the House Rent Allowance (HRA) be increased.
What is a Disability Pension for Armed Forces?
When an officer becomes invalidated due to disability attributed to or aggravated by Military Service, that officer will receive a grant of Disability Pension.
This pension consists of two elements, namely Disability element and Service element. This service element is equal to the retiring pension as determined. Disability element for 100% disability is set at 30% of the last drawn salary or ₹3510 per month. If the disability is less than 100%, the amount will reduce accordingly.
This Disability Pension (including disability element and service element) of Armed Forces are exempted from income tax (as per the circular on 24th June 2019).
The above discussion covers every detail on the 7th Pay Commission. Read the information and enjoy the benefits offered through the 7th Pay Commission.
7th Pay Commission Pay Scale For Different Employees from Different Government Departments
The pay scales for employees across various government departments in India are structured to reflect their roles, responsibilities, and expertise, ensuring fair compensation and attracting skilled individuals to public service.
Pay Scale and Allowance for Indian Air Force
The Indian Air Force offers competitive pay scales and allowances tailored to its personnel's roles, ranks, and responsibilities within the defence sector. These remuneration packages aim to attract and retain skilled individuals while providing financial support for their service and dedication to national security.
Pay Scale and Allowance for Anganwadi Workers
Anganwadi workers typically receive a fixed monthly honorarium and allowances based on government regulations and policies, which vary across states and regions. These remuneration packages aim to support Anganwadi workers financially for their vital role in delivering essential healthcare, nutrition, and education services to children and mothers in communities.
Pay Scale for Army and Defence Personnel
Personnel in the army and defence are paid according to their ranks, roles, and years of service; there are also allowances for location, hardship, and operational deployment. These pay packages provide military personnel competitive pay and support in defending defence and national security interests.
Pay Scale for Assistant Professors
The pay scale for assistant professors in India varies depending on the institution, location, and academic qualifications.
The associate professor received a monthly grade pay of ₹8,900, with a compensation range of ₹37,400 to ₹67,000. According to the 7th Pay Commission, assistant professors will make between ₹1 lakh and ₹2 lakh monthly, with a grade pay of ₹ 27,000. According to reports, this idea is projected to benefit approximately 47 lakh assistant professors and 52 lakh pensioners.
Pay Scale for Assistant Station Master
As they are essential to the operation of the railway station, assistant station managers in the Indian Railway System are paid a respectable wage. The assistant station master's base pay has not changed. However, the recommendations of the 7th Pay Commission have altered their grade pay.
Pay Scale for Bank Officers
Each employee has a different pay scale based on their position and title. Bank managers receive a monthly salary of ₹45,000, but regular bank clerks receive a base pay of ₹11,765.
Pay Scale for Probationary Officer
The pay scale for Probationary Officers (POs) in banks in India is typically governed by the Bank Probationary Officers (PO) pay structure, which varies among different banks. Generally, it includes basic pay and allowances such as Dearness Allowance (DA), House Rent Allowance (HRA), and other benefits.
| Base Salary | ₹27,865 |
| DA | ₹10,839 |
| HRA | ₹2,786 |
| Total Monthly Salary | ₹41,490 |
Pay Scale for Other Bank Employees
Bank clerical staff receive varying pay scales based on experience and location, including basic salary and allowances. Officers, such as specialist officers and managers, also have pay scales determined by designation and experience, supplemented by allowances and benefits.
Pay Scale for BPCL Employees
Employee compensation at Bharat Petroleum Corporation Limited (BPCL) is designed to consider their experience, jobs, and organisational responsibilities. In addition to base pay, it offers benefits and allowances, guaranteeing competitive pay and inspiring staff members to contribute to the company's success.
Pay Scale for Border Security Force (BSF)
The Border Security Force (BSF) uses a systematic pay scale system that considers several aspects, such as rank, experience, and tasks within the force, to establish employee compensation.
Pay Scale for BSNL Employees
The pay scale for Bharat Sanchar Nigam Limited (BSNL) employees is structured to align with industry standards and reflect their roles and responsibilities within the telecommunications sector.
Pay scale for CISF or Central Industrial Security Force.
The 7th Pay Commission's reforms have satisfied many government employees, but the CISF is not thrilled with the outcome. Day or night, the Central Industrial Security Force works in a challenging environment. The 7th Pay Commission's decision to maintain the CISF's pay scale at the same level as civil pay was disappointing. An Apex amount of ₹80,000 has been offered to paramilitary soldiers.
Pay Scale for Commercial Clerks or Commercial Superintendent
Commercial superintendents and clerks usually have competitive pay scales that align with industry norms and reflect the responsibilities and experience needed for these positions.
Pay Scale for CRPF
The salaries of personnel in the Central Reserve Police Force (CRPF) are set down under a systematic pay scale system. One of India's most prominent paramilitary groups, the CRPF, uses this pay scale to retain and attract qualified workers while upholding internal equity and morale among its staff.
Pay Scale for Gram Dak Sevak GDS BMP Employees
The Gramme Dak Sevak GDS pay scale BMP Workers GDS are primarily found in rural areas and are currently considered a distinct agent within the postal service. They work about four or five hours daily and are compensated with a time-related continuity allowance.
They also need to work a second job to make ends meet. However, per the 7th Pay Commission, certain modifications have been made to the BMP staff wage scale.
Pay Scale for IAS Officers
Like many other divisions, IAS officers will receive three times their current pay if the Seventh Pay Commission is implemented. The 6th Pay Commission's adjustments are being applied to IAS officer compensation. Pay for IAS Officers will start in 2017 per the 7th Pay Commission's recommendations. The wage scale will increase from ₹15,600 to ₹39,100 to ₹29,900 to ₹1,04,400 monthly. The monthly grade pay would also increase from ₹5,400 to ₹16,200.
Pay Scale for IES Employees
The pay scale for Indian Engineering Services (IES) employees is structured to reflect their specialised skills, expertise, and responsibilities within the engineering sector.
Pay Scale for IFS Officers
The pay scale for Indian Foreign Service (IFS) officers is determined by their rank, experience, and responsibilities within the diplomatic corps. It includes a basic salary and allowances such as dearness allowance (DA), foreign allowance, and housing allowance, ensuring competitive compensation and support for their diplomatic duties.
Pay Scale for IPS Officers
Their role influences an IPS officer's salary. The band system determines their pay. Band-III junior time scale employees make between ₹ 15,600 to ₹ 39,000 monthly, with a grade salary of ₹ 5,400.
On the other hand, senior time scale employees have a grade pay of ₹ 6,600 and are paid between ₹ 15,600 and ₹ 39,100 every month. Junior administrative staff members receive a monthly salary ranging from ₹ 15,600 to ₹ 39,100, with a base pay of ₹ 6,600.
Pay Scale for IRS Officers
Their experience level and rank determine IRS officers' pay. The Pay Commission's decisions adjust their compensation. In addition to their base income and grade point average, they also get various advantages, such as housing rent allowance, dearness allowance, travel allowance, and government-provided housing.
Pay Scale for Indo-Tibetan Border Police Force (ITBP)
ITBP officers patrol the 3,488 kilometres of the nation's border between China and India and participate in rescue missions. Most of the department's personnel are highly educated about life in the highlands. The ITBP department receives compensation based on the position held and the length of service, the same as other departments.
The pay commission usually emphasises the importance of providing timely and equitable adjustments to government employees' salaries and benefits. These commissions are essential to address inflation concerns and the cost of living and preserve parity with the private sector.
The pay commission's efficacy depends on several variables, such as the status of the economy, the government's financial capability, and the commission's capacity to strike a balance between the state's interests and its employees.
