7th Pay Commission Recommendations on Salary Increment for Central Government Employees
The 7th Pay Commission has totally abolished the system of annual increment calculation. The next stage of the same pay level in the ‘Pay Matrix Table‘ is equal to one increment. However, the commission has said in the report that the increment is equal to 3% of the basic salary.
What is the annual salary increment for CG employees?
What is the percentage for annual increment recommended in the 7th pay commission?
The 7th Central Pay Commission recommended the rate of percentage of annual increment for Central Government employees is 3%. But, the amount of increment is not equal to 3% of the basic salary! While calculating the annual increment in some stages is showing higher than 3% and some stages are lower than 3%. Approximately 3% of the basic salary is equal to an annual increment granted for Central Government employees every year.
How to calculate an increment in basic pay?
How to calculate the annual increment after the 7th pay commission?
The amount of 3% of basic pay is equal to the annual increment. However, there is no need to calculate 3% of basic pay every year. The pay matrix table has already been designed with an increment table for all pay levels. According to the pay level hierarchy, the next cell value is the basic pay with an annual increment.
7th CPC Increment Chart PDF
|Title of the Table||Annual Increment Table|
|Beneficiaries||Central Govt Employees|
|Minimum Annual Increment||Rs. 500|
|Maximum Annual Increment||Rs. 6500|
|Pay Commission||7th CPC (2016-2025)|
Date of Next Increment Rule
The date of the next increment rule is regulated by 10 of CCS (RP) Rules 2016 for all existing employees working in Central Government services. Very recently in November 2019, the Department of Expenditure issued a clarification order regarding the date of the next increment will be 1st January or 1st July after promotion on 1st July.
Increment Table for Pay Matrix Level -1
Fitment Factor is 2.57 | Annual Increment is 3%
Qualifying period for an increment is six months on 1st July
Annual increment every year – Promotion increment occasionally: Two types of increments are granted for CG Employees
Withholding of Increment
- With Cumulative Effect
- Without Cumulative Effect
Disciplinary action against the employee in two ways on withholding increment.
Also check: 7th Central Pay Commission Report – Download pdf
Increment in Salary Every Year
The annual increment for government employees in India usually denotes a part of the salary hike in a year.
“Pay Hike (Pay Increment) is the most attractive word among employees working in Government Services”. Needless to say that is the most powerful keyword among the Central government employees because a pay hike once a year consolidated according to their basic pay. It is also a consolation even if they are not getting promotions for years.
Government employees are getting two types of increments, one annual increment and another one is a promotional increment.
ANNUAL INCREMENT: Annual increment is grating to all group of Central Government employees on 1st January or 1st July of every year (previously in 6th CPC, there was one date for annual increment, 1st July of every year)
PROMOTIONAL INCREMENT: While fixation of pay on promotion or MACP, there will be an increment. That is called promotional increment.
INCREMENT DAY: 1st January or 1st July
NOTIONAL INCREMENT: The direct meaning of ‘Notional’ is hypothetical. An employee deserves to be admissible for an annual increment after completion of one year, but he should have to present his presence on duty to the next day or further. [Know more details]
Also check: 7th Pay Commission Pay Scale Calculator
Leave on Increment Day – What Say Rule?
As per the FR and SR Rules, If a Government employee is on leave, the increased pay will be drawn only from the date on which he resumes duty. Attendance on Increment Date Should be Must? Is attendance compulsory for CG employees on the implementation day (01.01.2016) of the 7th CPC recommendations…[Click to read detailed story]
Check also: Date of Next Increment Calculator after 7th CPC
Rate of Annual Increment and Increment Date
The 7th Pay Commission has recommended on the rate of annual increment is being retained at 3%
RATE OF INCREMENT: The annual increment granted 3% of basic pay in the 6th CPC. The 7th Pay Commission also retained the rate of 3% as an annual increment. However, there is no calculation for 3% of basic pay. Value of next cell in the same pay level in the Pay Matrix Table. Date of next increment in revised pay structure: There shall be two dates for grant of increment namely, 1st January and 1st July of every year, instead of the existing date of 1st July. Date of next increment clarification as per rule 10 of CCS (RP) Rules 2016
INCREMENT DATE: 7th CPC recommended two dates (1st January and 1st July of every year) for granting increment to all CG Employees with effect from 1.1.2016. Provided that an employee shall be entitled to only one annual increment either on 1st January or 1st July depending on the date of his appointment, promotion, or grant of financial upgradation.
Annual Increment Rules: The increment in respect of an employee appointed or promoted or granted financial upgradation including upgradation under Modified Assured Career Progression Scheme (MACPS) during the period between the 2nd day of January and 1st day of July (both inclusive) shall be granted on 1st day of January and the increment in respect of an employee appointed or promoted or granted financial upgradation including upgradation under MACPS during the period between the 2nd day of July and 1st day of January (both inclusive) shall be granted on 1st day of July.
Annual Increment Calculation Method
Increments in Pay Matrix: Annual Increment Calculation Method Prescribed by 7th Central Pay Commission in Salary Slab as follows…
Illustration: An employee in the Basic Pay of 32300 in Level 4 will move vertically down the same Level in the cells and on grant of increment, his basic pay will be 33300.
Salary Increment Procedure India
7th Pay Commission Annual Increment (January and July) Anomaly Calculator
Annual increment is granted to all Central Govt employees including Railways equal to 3 percent of basic pay every year on 1st January or 1st July. 7th CPC has calculated annual increment for pay level as in the hierarchy pay matrix table. Click to view the pay increment chart as per the 7th CPC for pay levels 1 to level 18. Click to calculate your increment
Advance Increment in 7th Pay Commission
What is advance increment?
One or two annual increments are granted in advance on his/her performance of duty. Stenographers of Subordinate Offices are being granted one or two advance increments for qualifying speed tests in shorthand at 100/120 wpm.
How to calculate advance increment after the 7th CPC?
In the same pay level of the pay matrix of eligible staff, granting one step or one stage of the pay hierarchy is an advance increment. Normally it is equal to an annual increment.
7th Pay Commission Advance increments: Stenographers of Subordinate Offices on qualifying speed test in shorthand at 100/120 w.p.m
The amount of these advance increments shall be treated as a separate element in addition to the basic pay and it should be counted as pay for all purposes. [Click to read more]
Salary Increment for State Government Employees
The 7th Pay Commission has totally abolished the system of annual increment calculation. Almost the same methodology is followed in most state governments for their employees. They have created their own ‘Pay Matrix Table’ for their workforce.
What say FR 22(I)(a)1 Rules?
The rule provided options to an employee to fix his pay on promotion or MACP up-gradation in two ways. One is the date of promotion and another is the date of the increment (either 1st January or 1st July). [Click to read full story]
Dopt Orders on Notional Increment issue
- One Notional Increment to those retired on 30 June after completion of 365 days
- Notional Increment for Pensionary Benefits – Court Judgement on Annual Increment
- Anomaly in Determining Notional Pay – Revision of Pension of pre-2016 pensioners
- Grant of Notional Increment on completion of 12 Months of Service
- 7th CPC Pension (Notional Pay) Calculator for Pre-2016 Pensioners
Withholding Annual Increments Of Non-Performers After 20 Years
There is a widespread perception that increments, as well as an upward movement in the hierarchy, happen as a matter of course.
The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted.
This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments.
The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.
This will act as a deterrent for complacent and inefficient employees. However, since this is not a penalty, the norms for penal action in disciplinary cases involving withholding increments will not be applicable in such cases.
This will be treated as an “efficiency bar”. Additionally, for such employees, there could be an option to leave service on similar terms and conditions as prescribed for voluntary retirement.
Grant of First Annual Increment in Recruits Pay: The main demand of the Services in this connection is that the existing stipulation that the next increment will be granted from the date of attestation or mustering be done away with.
They have pointed out that trades whose skill requirements are low and whose entry-level qualifications are lower invariably get attested or mustered earlier and thus are entitled to the next annual increment earlier than trades whose training period is longer.
Analysis and Recommendations: The Commission is of the view that grant of the next increment in the case of recruits should not place those with higher entry-level qualifications at a disadvantage.
The Commission, accordingly recommends that the date of enrolment should be reckoned for the purposes of the first increment for all recruits who are finally successfully attested/mustered.
Check also: Click To View More News 7th CPC Increment
NC JCM Staff Side Suggested to 7th Pay Commission on Increment
Increment: Whether the present system of annual increment on 1st July of every year uniformly in case of all employees served its purpose or not? Whether any changes are required?
No. In fact, the single-date increment system has brought in anomalies, which were discussed at length at the National Anomaly Committee, without reaching an agreement.
In our opinion, the commission must recommend, for administrative expediency, two specific dates as increment dates. Viz. 1st January and 1st July.
Those recruited/appointed/promoted during the period between 1st Jan and 30th June, will have their increment date on 1st January and those recruited/appointed/promoted between 1st July and 31st December will have it on 1st July next.
This apart the Commission is required to specifically recommend that those who retire on 30th June or 31st December are granted one increment on the last day of their service.
What should be the reasonable quantum of annual increments?
The reasonable quantum of increment should not be less than 5% of the basic pay or the rate of increment agreed upon through bilateral discussion in the Banking industry, whichever is higher.
Whether there should be a provision of variable increments at a rate higher than the normal annual increment in the case of high achievers? If so, what should be transparent and objective parameters to assess high achievement, which could be uniformly applied across Central Government?
Without defining the term “high achiever” and prescribing transparent and objective parameters to assess high achievement the system of variable increments at a rate higher than normal annual increments will be misused in the subjective assessment of high achievements. For these reasons and for what we have stated in reply to question No. 2.3 the scheme of variable increment is not desirable.
The annual rate of increment @ 5% of the pay.
Fixation of pay on promotion = 2 increments and difference of pay between present and promotional posts (minimum Rs.3000).
Date of Next Increment in Six Months on Promotion or MACP
The Finance Ministry issued an important order regarding the DNI on Promotion on 1st July [O.M. No.4-21/2017-IC/E.IIIA dated 29.10.2019].
The order clarified that the employees who are getting a promotion or financial up-gradation on 1st July and receiving the benefit of two increments (1st annual increment due on 1st July and the 2nd notional increment on account of promotion) will accrue their subsequent increment on the following 1st January after completion of six months period.
For example, as per the order, if an employee gets a promotion or MACP on the increment date of 1st July 2019, his pay will be fixed on 1st July 2019 and the date of the next increment will be on 1st January 2020, after completion of 6 months service. After that, the next increment will be eligible only after the completion of one year on 1st January 2021.
Annual and Promotional Increment Rules for Central Govt Employees in orders to download pdf
Salary Increment Letter Format
Salary Increment Letter After 1 year: No need to write a letter for getting an increment in Central Government Services! The annual salary increment is an automatic process every year for all groups of Central Government employees! All government employees are getting an increment according to their basic salary. The promotional increment will also be calculated while on pay fixation.
|Date of Next Increment on Promotion or MACP – Rule 10 of CCS (RP) 2016 – 31.10.2019|
|Date of Next Increment on Promotion or MACP Clarification Orders pdf Download – 31.10.2019|
7th Pay Increment Fixation Table for Pay Level 1 to 5
- Salary Increment Table for Pay Matrix Level 1
- Salary Increment Table for Pay Matrix Level 2
- Salary Increment Table for Pay Matrix Level 3
- Salary Increment Table for Pay Matrix Level 4
- Salary Increment Table for Pay Matrix Level 5
7th Pay Increment Fixation Table for Pay Level 6 to 9
- Salary Increment Table for Pay Matrix Level 6
- Salary Increment Table for Pay Matrix Level 7
- Salary Increment Table for Pay Matrix Level 8
- Salary Increment Table for Pay Matrix Level 9
7th Pay Increment Fixation Table for Pay Level 10 to 12
- Salary Increment Table for Pay Matrix Level 10
- Salary Increment Table for Pay Matrix Level 11
- Salary Increment Table for Pay Matrix Level 12
7th Pay Increment Fixation Table for Pay Level 13 to 16
- Salary Increment Table for Pay Matrix Level 13
- Salary Increment Table for Pay Matrix Level 13A
- Salary Increment Table for Pay Matrix Level 14
- Salary Increment Table for Pay Matrix Level 15
- Salary Increment Table for Pay Matrix Level 16
Dopt Orders on Annual Increment
- Grant Special Increment as Personal Pay to AIS Officers: DoPT Order 3.8.2021 August 4, 2021
- Grant of Annual Increment Due on 1st July to the Employees retiring on 30th June of the Year – Dopt on 24 June 2021 June 25, 2021
- Date of next increment under Rule 10: One More Opportunity to Exercise the Option May 28, 2021
- Date of Next Increment clarification order issued by Finance Ministry on 15.4.2021 April 19, 2021
- Grant of Notional Increment and Re Fixation of Pensionary Benefits – BPS December 3, 2020
- 7th Pay Commission Advance increments: Stenographers of Subordinate Offices on qualifying speed test in shorthand at 100/120 w.p.m July 25, 2020
- Today is the Day for Annual Increment for Central Govt employees – 1.7.2020 July 1, 2020
- Compilation of Government Orders on Annual Increment for CG Staff and Officers June 28, 2020
- 7th Pay Commission Pay Matrix Annual Increment Table for CG Employees June 28, 2020
- 7th Pay Commission Annual Increment – Some Questions and Answers June 26, 2020
- Annual Increment on 1.7.2020 for Central Govt Employees June 25, 2020
- Annual Increment for Central Govt Employees – Claim and FactCheck June 20, 2020
- Rounding off the amount of Annual Increment Rules June 20, 2020
- Grant of annual increment due on 1st July to the employees retiring on 30th June of the year June 4, 2020
- Notional Increment on the day of retirement (increment due on next day) for the purpose of fixation of pension May 16, 2020
- Circulation of OM issued by MoF – DoE regarding 7th CPC April 17, 2020
- One Notional Increment to those retired on 30 June after completion of 365 days January 22, 2020
- Clarification on Date of Next Increment under CCS Rule 10 December 27, 2019
- Determination of Date of Next Increment – Rajya Sabha Questions and Answers December 18, 2019
- Clarification on the Date of Next Increment in 6 Months on Promotion December 2, 2019
- New Annual Increment Rules applicable to Railway employees November 7, 2019
- Date of Next Increment on Promotion or MACP – Rule 10 of CCS (RP) 2016 October 31, 2019
- Notional Increment for Pensionary Benefits – Court Judgement on Annual Increment October 29, 2019
- Avoid Financial Loss to Employees on their Pay Fixation in 7th CPC Pay Matrix – NFIR October 4, 2019
- Increment issue to those retiring on 30th June – SLP dismissed by Supreme Court August 20, 2019
- 7th CPC Increment: Increment Day for CG Employees July 1, 2019
- 7th CPC Increment Calculator for Central Govt Employees June 27, 2019
- 7th Pay Commission Annual Increment Rates and Calculation June 25, 2019
- 7th Pay Commission Increment – Recommendations on Increment Calculation June 14, 2019
- 7th Pay Commission News: Increment Anomaly Calculator June 11, 2019
- 2 Additional Increments to Nursing Staff under 7th Pay Commission – Railway Board Orders June 5, 2019
- Rule 10 of Army Officers and Air Force Officers Pay Rules – MoD Orders May 3, 2019
- 2 Additional Increments to Nursing Personnel – NFIR December 15, 2018
- Finmin Clarification on Increment Date in Rule 10 of CCS (RP) Rules August 2, 2018
- TN 7th Pay Commission : Pay Matrix Annual Increment Calculation October 12, 2017
- 7th CPC Bunching Anomaly : Denial of Bunching Increment July 6, 2017
- 7th CPC Increment Anomaly – Annual Increment Rate Less than 3% in Pay Matrix July 6, 2017
- Annual increment – Benchmark for MACP or Regular Promotion November 23, 2016
- Date of Birth on 1st January 1956 forced him to retire a month advance affects his 7th CPC benefits June 12, 2016
- Dorai focus on two crucial issues of 50% DA Merger and 3% Increment April 25, 2016
- OROP Table 72 – Disability / Liberalized Disability Element for 100% Disability for Commissioned Officers of Territorial Army February 5, 2016
- 2 Increment days proposal ignored by 7th Pay Commission December 23, 2015
- Is attendance compulsory for CG employees on the implementation day (01.01.2016) of the 7th CPC recommendations December 21, 2015
- Performance is the main constraint on Annual Increment in 7th CPC December 15, 2015
- Assessment of INDWF on 7th CPC Recommendations – Fitment, Annual Increment MACP and Cadre Review December 9, 2015
- Opposition to notification of OROP – Rajya Sabha Q&A on 1.12.2015 December 8, 2015
- 7th CPC Increment : Recommendations on Annual and Promotional Increment December 6, 2015
- OROP Notification issued by Central Government for Defence Forces personnel November 7, 2015
- One Rank One Pension – Expected Pension hike and Arrears for ex-servicemen September 7, 2015
- Spotlight of One Rank One Pension September 5, 2015
- One Rank One Pension : A new wave of expectation rises; Announcements expected in 48 hours September 4, 2015
- Arun Jaitley on OROP – Annual pension revision do not happen anywhere in the world September 1, 2015
- Grant of Increment for those who have completed one year on the day of superannuation – NC JCM Staff Side writes to Secretary of DoPT July 11, 2015
- Yearly Increment Calculation – Will the 7th CPC continue the same formula or it brings any changes in to it…! July 9, 2015
- 7th Pay Commission likely to recommend Jan 1, July 1 as Annual Increment days June 30, 2015
- Calculation of Annual Increment for Central Government employees as per 6th CPC May 16, 2015
- Rounding off the amount of Increment to next multiple of 10 May 15, 2015
- 6th CPC INTRODUCES NEW METHOD OF CALCULATION FOR INCREMENTS May 15, 2015
- Increment benefit comparison between 5th & 6th Pay Commission May 15, 2015
- Increment issues – Why is Annual Increment denied to employees retiring in June? May 15, 2015
- Injustice to newly recruited Accountant in respect of 1st increment of service life – NFCAA January 21, 2015
- Why is Annual Increment denied to employees retiring in June? May 23, 2014
- Annual Increment for Central Govt Employees – Comparison table between 5th & 6th CPC April 25, 2014
- 6th CPC INTRODUCED NEW METHOD OF CALCULATION FOR INCREMENTS March 25, 2014
- Rounding off the amount of Increment to next multiple of 10 February 27, 2014
7th Pay Commission Increment FAQs:
What is the minimum increment amount for cg employees?
After the 7th pay commission, the minimum amount of an annual increment for Central Government employees is Rs. 500.
What is the highest increment amount for cg employees?
After the 7th pay commission, the maximum amount of an annual increment for Central Government officers is Rs. 6500.
How to calculate annual increment for cg employees?
After the implementation of the 7th pay commission, there is no need to calculate annual increments for all groups of CG employees and officers. The next cell value in the same pay matrix level is the basic pay with an annual increment.
What is the difference between annual increment and promotional increment?
‘Annual increment’ is being calculated based on a period of one year. But ‘Promotional Increment’ is given only at the time of promotion.
Also Check: Central Government Pay Matrix Table 2022 PDF