7th Pay Commission pay matrix: This issue has been one of the most talked about as its impact is the biggest across the entire hierarchy of the bureaucratic establishment. Government servants had their say when the 7th Pay Commission panel was discussing the issue and thereafter it released its own views and proposals that the government accepted or altered as it deemed fit depending on the lobbying that went on. For instance, while the panel report had recommended a hike in pay based on fitment factor of 2.57x, what Centre has in mind is 3.0x. However, staff wants it at 3.68x and minimum salaries at Rs 26,000. So what exactly did the 7th CPC report end up in doing about the pay matrix? Read on:

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According to the panel efforts were made to devise a salary structure to address all issues and concerns. Emphasis was laid on designing a simple pay matrix. Government employees associations placed many demands before panel including common entry pay, rationalization of the existing grade pay structure, common treatment of like cadres, transparent pay structure as also increasing the frequency of the MACP. The new 7th Pay Commission pay matrix incorporates all these features: the whole universe of pay levels in one simple chart. The levels have been rationalized too, displaying a logical pay progression. Employees would be able to see their pay level, where they fit in and how they are likely to progress over their career span. Procedures for calculating pension too was simplified. 

The new 7th Pay Commission based salary structure has been laid out by and large broadly as an open ended, layered pay matrix, for civilians as well as for the armed forces. Panel said that the prevailing rate of increment is considered quite satisfactory and has been retained. The concept of separate grade pay has been done away with and the grade pay at all levels has been subsumed into the pay matrix. 

Check 7th Pay Commission pay matrix table below:

As far as pre New Pension System (NPS) arguments are concerned, panel kept in view needs of pensioners under the old pension system, (employees who joined before 01.01.2004). Efforts were made to alleviate their plight and allow a respectable living. Significantly, almost all government employees appointed on after 01.01.2004 were unhappy with the NPS. While the NPS did not form a part of the panel's Terms of Reference, it recorded the sentiments of the affected employees. Notably, it even said that Centre should step in and address their complaints.