Salary Increment for Government Employees in India
The 7th Pay Commission Recommendations concerning Salary Increment for Central Government Employees in India have brought about a significant deviation from the previous system. The Commission has done away with the traditional practice of computing annual increments, and instead, progression to the next pay level in the ‘Pay Matrix Table’ is now treated as a single increment. As per the Commission’s report, it is important to note that the increment now equates to 3% of one’s basic salary.
What is the annual salary increment for CG employees?
What is the percentage for the annual increment recommended in the 7th pay commission?
What is the annual salary increment for Central Government (CG) employees? Also, what percentage of the annual increment has been recommended by the 7th pay commission? As per the recommendations of the 7th Central Pay Commission, the rate of percentage of annual increment for CG employees is 3%. However, it is important to note that the actual amount of increment is not uniformly equal to 3% of the basic salary. This is due to variations in the stages of calculation, whereby some stages may show increments higher than 3%, while others may show lower increments. As a rough approximation, an annual increment of about 3% of the basic salary is granted to Central Government employees every year.
How to calculate an increment in basic pay?
How to calculate the annual increment after the 7th pay commission?
Calculating an increment in basic pay and annual increment after the 7th pay commission can be a complex process. While it is true that the amount of 3% of basic pay equates to the annual increment, it is not necessary to calculate this percentage every year. This is because the pay matrix table already includes an increment table for all pay levels. As per the pay level hierarchy, the basic pay for the next cell value is determined with an annual increment. Therefore, referring to the pay matrix table is the best way to calculate the 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
Withholding of Increment
The act of withholding an increment may have a cumulative or non-cumulative effect on an employee’s salary. In the event of disciplinary action, an increment may be withheld in two ways as outlined in Rule 11(iv). It is worth noting that increments are granted on either the 1st of January or July based on eligibility. Thus, if an increment is withheld as a penalty, subsequent increments following the date of the penalty will also be withheld.
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 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 will happen?
It is stated in the FR and SR Rules that if a Government employee is on leave on Increment Day, the increased pay will only be received from the date of resuming duty. It is mandatory for Central Government employees to attend work on the implementation day (01.01.2016) of the 7th CPC recommendations. Therefore, if a government servant’s increment date falls during a period when they are on Earned Leave/Commuted Leave/Half Pay Leave/Leave not due, the benefit of such increment will only be paid from the date of rejoining duty after leave has expired, despite the actual date of the next increment. – 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 in 7th CPC
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
The Advance Increment in the 7th Pay Commission is a system where an employee is granted one or two annual increments in advance based on their performance of duty. One example of this is the Stenographers of Subordinate Offices who are given one or two advance increments for passing speed tests in shorthand at 100/120 wpm. To calculate the advance increment after the 7th CPC, one step or one stage of the pay hierarchy is granted in the same pay level of the pay matrix of eligible staff. This is equal to an annual increment and should be treated as a separate element in addition to the basic pay, and should be counted as pay for all purposes. The salary increment for State Government Employees follows a similar methodology, where most state governments have created their own ‘Pay Matrix Table’ for their workforce. The system of annual increment calculation has been abolished under the 7th Pay Commission.
What are 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
The perception among employees that increments and promotions are granted automatically has become widespread. Even the grant of MACP, while conditioned on performance, is often taken for granted. The current commission believes that employees who do not meet the prescribed performance criteria should not receive future annual increments. To deter complacency and inefficiency, the commission proposes withholding annual increments for employees who fail to reach the benchmark for MACP or regular promotion within the first 20 years of their service. This withholding of increments should be viewed as an “efficiency bar” rather than a penalty, meaning that disciplinary action norms will not apply. Employees failing to meet the criterion could also have the option to leave service with terms and conditions similar to voluntary retirement.
The Services have requested the removal of the existing stipulation that the next increment be granted from the date of attestation or mustering, as this creates an inequity between low-skilled jobs and those with higher entry-level qualifications. The latter group may not be attested or mustered until later, resulting in a delay in receiving their next increment. The commission agrees that this should not disadvantage those with higher entry-level qualifications and recommends that the date of enrollment be used instead of attestation or mustering for the purpose of granting the first increment to all successful recruits.
Check also: Click To View More News 7th CPC Increment
NC JCM Staff Side Suggested to 7th Pay Commission on Increment
The NC JCM Staff Side has submitted a proposal to the 7th Pay Commission regarding the current system of annual increments. They have raised concerns over whether the present system of annual increments, which takes place on 1st July of every year for all employees, serves its purpose effectively. The single-date increment system has caused several anomalies, which were discussed at length at the National Anomaly Committee, but no agreement was reached. In order to address this issue, the commission should recommend two specific dates as increment dates for administrative expediency: 1st January and 1st July. This would mean that those recruited, appointed, or promoted between 1st January and 30th June would have their increment date on 1st January, while those recruited, appointed, or promoted between 1st July and 31st December would have it on 1st July. Additionally, the commission should recommend granting one increment on the last day of service for employees who retire on 30th June or 31st December.
What should be the reasonable quantum of annual increments?
In the banking industry, the reasonable quantum of annual increments should be at least 5% of the basic pay or the rate of increment agreed upon through bilateral discussion, whichever is higher. As for the provision of variable increments for high achievers, it is important to define the term “high achiever” and establish transparent and objective parameters for assessing high achievement. Without such parameters, the system of variable increments may be subjectively misused. Given these reasons and the response to question 2.3, the scheme of variable increment is not recommended. The annual rate of increment should be set at 5% of the pay. Additionally, pay on promotion should be fixed at two increments and a minimum difference of Rs. 3000 between present and promotional posts.
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 Finance Ministry has issued a significant order on the Date of Next Increment (DNI) that pertains to promotion or financial up-gradation, which was released on the 1st of July 2019 [O.M. No.4-21/2017-IC/E.IIIA dated 29.10.2019]. The order has provided clarity on the accrual of subsequent increments for employees who receive a promotion or financial up-gradation on the 1st of July, and benefit from two increments, i.e., the first annual increment due on 1st July and the second notional increment on account of promotion. As per the order, if an employee receives a promotion or MACP on the increment date of 1st July 2019, their pay will be fixed on 1st July 2019, and the subsequent increment will accrue on 1st January 2020, after completion of six months of service. Thereafter, the next increment will be eligible only after completion of one year on 1st January 2021. For further information on the Annual and Promotional Increment rules for Central Govt Employees, please refer to the downloadable pdf version of the order.
Salary Increment Letter Format
The format for a salary increment letter is not required for Central Government Services employees after one year of service. This is due to the fact that an annual salary increment is automatically processed for all groups of Central Government employees each year, based on their basic salary. In addition, promotional increments are also taken into account during 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 Levels 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 Levels 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 Levels 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
- Check Your Next Annual or Promotional Increment in Our Online Calculator! October 24, 2023
- CAT Jabalpur and Delhi Court Orders for Benefit of One Notional Increment August 4, 2023
- Grant of Notional Increment for Pensionary Benefits – Railway Board July 14, 2023
- Notional Increment for Pensionary Benefits – Court Judgement on Annual Increment July 2, 2023
- Grant of Notional Increment (as due on 1st July) for the Pensionary Benefits June 28, 2023
- Grant of Notional Increment to Employees retiring on 30th June and 31st December June 28, 2023
- One Notional Increment to Those Retired on 30 June After Completion of 365 days June 2, 2023
- Latest News Who Retired 30 June Add One Increment May 28, 2023
- 7th CPC Recommendations Implementation Day: Is Attendance Compulsory? April 10, 2023
- 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 Increment in 7th Pay Commission to Stenographers – DoPT Order 24.7.2020 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
- 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
- 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
- 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.