7th Pay Commission Pay Fixation in the New Pay Structure
Within the context of Indian government employment, the term “pay fixation” is frequently used. It refers to the process of determining an employee’s salary upon joining, being promoted, or receiving an annual increment. In order to have their salary fixed after the implementation of a new pay commission or after receiving a financial benefit under any scheme (such as the ACP or MACP Scheme), all central government employees and staff must submit a physical application form. This form is crucial as it asks employees to indicate whether they wish to fix their pay on their promotion date, annual increment date, or some other optional date. It is important for employees to be aware of the rules related to pay fixation.
It is worth noting that the option to fix one’s pay in the updated pay structure is only available once. If an employee chooses to modify their basic salary from the 6th CPC to the 7th CPC, their basic salary will be adjusted according to the recommended pay fixation procedure.
Pay Fixation Rules in 7th Pay Commission
In the context of revising basic salaries from one pay commission to the next, the ‘Fitment Factor’ holds great importance. The recommendation of the ‘Fitment Benefit’ by each pay commission varies and under the 6th pay commission, a single-window format for Central Government employees was recommended in relation to the ratio of Fitment Benefit. To revise the basic salary from the 5th to the 6th Pay Commission, a common Fitment Factor of 1.86 was suggested. The 7th Pay Commission followed a similar approach and revised the ratio to 2.57. Hence, it is essential to calculate the Fitment Benefit (1.86) carefully in the context of the 6th CPC. Click to read a detailed report
7th Pay Commission Pay Fixation Formula
The 7th Pay Commission has recently introduced a new method for pay fixation, consisting of four steps. Firstly, the basic pay as of 31st December 2015 should be multiplied by a fitment factor of 2.57 and rounded off to the nearest rupee. Secondly, the Pay Matrix Level based on the Grade Pay must be determined. Thirdly, the value obtained in step one should be compared with the corresponding Pay Matrix Level pay hierarchy that has an equal or higher value. Lastly, the chosen value will become the revised pay as of 1st January 2016. These revised rules are applicable to all categories of Central Government employees under the Central Civil Services (Revised Pay) Rules 2016.
Pay Fixation Example in 7th CPC
As per the 7th CPC, here is an illustration of pay fixation. Suppose an employee, designated as ‘T,’ currently holds a GP 4200 position and receives a salary of Rs. 20,000 under PB-2. Based on these details, the individual’s Basic Pay would be Rs. 24,200 (20,000+4200). After applying the multiplication factor of 2.57, the total pay for ‘T’ would be Rs. 62,194, which would place them in Level 6 of the salary structure. Therefore, ‘T’s salary would be revised to Rs. 62,200 in Level 6.
Fitment Factor for CG Employees
A proposal has been put forth to introduce a standardized Fitment Factor of 2.57 for all Central Government (CG) employees. This factor takes into account a neutralization factor of 2.25 for Dearness Allowance (DA). The assumption is that the rate of DA will be at 125 percent during the implementation of the new pay, which is mentioned in paragraph 5.1.27 of the 7th CPC Report.
Dopt Orders on Pay Fixation
The Department of Personnel and Training has been consistently releasing orders and circulars pertaining to the fixation of pay for Central Government employees during promotions or Modified Assured Career Progression (MACP). To access all of these Dopt orders and circulars, please click on the provided link. – Click to view all Dopt orders circulars
Fitment Factor for Defence Personnel
The starting point for entry-level personnel in the defence forces, including Sepoys, has been established at Rs.21,700 by the Defence Pay Matrix. The new matrix’s implementation is significantly influenced by a multiple of 2.57, which is the product of the current minimum pay of Rs.7,000 and the Commission’s proposed minimum pay of Rs.18,000. This fitment factor applies to all employees without discrimination. Military Service Pay (MSP) will also receive an identical fitment of 2.57, as detailed in Paragraph 5.2.7 of the 7th CPC Report, but only for Defence forces personnel.
Staff Side Suggestion on Pay Fixation
In accordance with the Staff Side Suggestion on Pay Fixation, when an employee is elevated to a higher grade within the revised pay structure, a specific method is used to determine their new pay. The process involves calculating an increment equivalent to 3% of the sum of the employee’s Pay in Pay Band and Grade Pay, which is then rounded off to the nearest multiple of 10. This amount is subsequently added to the employee’s existing pay in the Pay Band. Furthermore, it is essential to ensure that the newly fixed Pay is not below the minimum amount established for the Pay Band into which the employee has been promoted. Staff Side suggestion in detail – Click to read full story
Rationalization Applied in the Present Pay Structure
7th CPC Pay Fixation Table
The following is a compilation of VII Pay Fixation Tables aimed at providing a ready reckoner table for pay fixation on promotion, taking into account the pay fixed on the date of promotion or the date of the next increment. These tables are specifically designed for employees who have been promoted from Level 1 to 2, Level 2 to 3, Level 2 to 4, Level 4 to 5, and Level 5 to 6.
- VII Pay Fixation Tables: Promoted from Level 1 to 2
- VII Pay Fixation Tables: Promoted from Level 2 to 3
- VII Pay Fixation Tables: Promoted from Level 2 to 4
- VII Pay Fixation Tables: Promoted from Level 4 to 5
- VII Pay Fixation Tables: Promoted from Level 5 to 6
Pay Fixation on Promotion Format Rules
The guidelines for the Pay Fixation on Promotion format have been established. In addition, a calculator for computing the salary revision under the 7th Pay Commission has been introduced, known as the 7th CPC Pay Fixation on Promotion or MACP Calculator. The Pay Matrix has simplified the process of calculating the revised pay. To provide an example, if an individual’s current position has a Grade Pay of Rs. 4200 and Band Pay-2 of Rs. 12110 as of 01.01.2016, their updated Basic Pay and Allowance can be determined by following the instructions provided below.
7th CPC Pay Fixation Step 1
- Your 6th CPC Basic Pay ( Grade Pay + Band Pay) is = 4200+12110= Rs. 16310
7th CPC Pay Fixation Step 2
- Multiply your 6th CPC Basic Pay with 7th CPC’s Fitment Formula i.e. 2.57:- 16310 x 2.57 = Rs.41916.70 ( Paisa to be rounded off to the nearest Rupee) = Rs.41917
7th CPC Pay Fixation Step 3
Please match the figure displayed above (41917) with the corresponding figures assigned in the Matrix Table provided below, specifically in the Grade Pay column of Rs.4200. Unfortunately, no direct match was found. However, the closest higher figure in the Grade Pay column is Rs. 42300, which can be chosen instead. Therefore, your New 7th CPC Basic Pay will be Rs. 42300.
7th CPC Pay Fixation Step 4 (HRA)
The HRA percentage has been updated to 24%, 16%, and 8% for the existing 30%, 20%, and 10%, respectively. Individuals who were previously in the 30% HRA Bracket will now have an HRA of 24% under the 7th CPC. This means that the HRA under the 7th CPC is calculated as Rs.10152, which is 24% of Rs.42300.
7th CPC Pay Fixation Step 5 (TPTA)
The 7th Central Pay Commission has proposed Transport allowance for employees belonging to three distinct categories and two types of locations. Those residing in cities categorized as A1 and A (a list of 19 such cities is available) are eligible for higher TPTA rates. Based on your Grade Pay, which falls in the range of 2000 to 4800, your TPTA is Rs. 3600+DA.
7th CPC Pay Fixation Step 6 (DA)
From January 1st, 2016, DA will be null. Hence, it won’t be necessary to consider DA while calculating gross pay as of that date. In order to arrive at your revised 7th CPC Gross pay as on January 1st, 2016, simply add up the numbers: Basic Pay + HRA + TPTA + DA = 42300+10152+3600 = Rs.56052.
- 7th Pay Commission MACP Calculator as per Rule FR 22(I)(a)(1)
- 7th CPC Pay Fixation on Promotion or MACP Calculator
Top Developments on Pay Fixation
- Grant of Pay Structure in PB-2 | Fixation of Pay Clarification – EPFO June 19, 2023
- Stepping Up of Pay-Consolidated Guidelines June 19, 2023
- Date of Next Increment (DNI) under Rule 10: BMS Demands to provide one more opportunity for exercising option under FR 22 22(1)(a)(1) March 3, 2023
- Finmin Clarification: Methodology of Fixation of Pay on Promotion to SO(A/c)AAO August 2, 2022
- Pay Fixation on Promotion under Rule 13 of CCS (RP) Rules 2016 February 22, 2020
- Fixation of Initial Pay of Nursing Cadre with Fixation Table February 15, 2020
- Opportunity to Revision of Option to Come Over to CCS (RP) Rules 2016 February 7, 2020
- 7th Pay Commission Pay Fixation on Transfer to a lower post under FR 15(a) October 6, 2019
- 3rd PRC Pay Fixation Principles for CPSE Executives – Orders with Pay Fixation Examples October 1, 2019
- 7th Pay Commission Promotion and MACP Pay Fixation September 17, 2019
- Fixation of Pay in the Revised Pay Structure to Running Staff August 29, 2019
- Clarification on Grant of Non-functional Scale to Group B Officers in Pay Matrix Level-11 August 18, 2019
- Latest 7th Pay Commission Updates on Pay Fixation August 18, 2019
- Anomaly in fixation of pay of Chief Loco Inspectors in Railways August 18, 2019
- 7th CPC Pay Fixation Methodology – Detailed report with 2 Illustrations July 29, 2019
- 7th CPC Pay Revision of Option for Railway Employees July 29, 2019
- Top 20 Updates on 7th CPC Pay Fixation July 29, 2019
- 7th Pay Commission News: Important Clarification on Pay Fixation in Revised Pay Scales June 12, 2019
- Option for Fixation of Pay on Promotion from DNI – Clarification Orders April 22, 2019
- Anomaly in Pay Fixation on Promotion in New Pay Scale – DoP March 29, 2019
- 7th CPC Pay fixation – Pay fixation of SCS/Non-SCS officers promoted to IAS March 2, 2019
- 7th CPC Pay Fixation – Clarification on Regular Promotion after MACP February 27, 2019
- 7th CPC Bunching of Pay – Point of Doubts and Clarification February 9, 2019
- 7th CPC Fixation of Bunching of Pay – Finmin orders with Illustrations February 9, 2019
- 7th CPC Pay Fixation on Bunching – Clarification Orders issued by Finmin February 8, 2019
- Pay Fixation on Appointment in Personal Staff of Ministers – DoPT February 7, 2019
- Fixation of Pay on Non-Functional Upgradation – Some Illustrations December 18, 2018
- Benefit of Protection of Pay – Fixation Detail Table December 17, 2018
- 7th CPC Pay Fixation: Online Discussion Comments December 16, 2018
- 7th Pay Commission Pay Fixation:Opportunity to Revise Option – Finmin Orders Dt. 12.12.2018 December 14, 2018
- Internal Financial Advisor (Level 13 in Pay Matrix) – DoPT December 6, 2018
- Eligibility Criteria for Pay Matrix Level 14 – DoPT Orders dt. 29.10.2018 December 6, 2018
- Fixation of Pay with An Extra Increment under Rule 13 RP Rules – RBE 175/2008 November 22, 2018
- Fixation of Pay on Promotion between 1.1.2016 and Date of Notification issue – NC JCM Staff Side November 6, 2018
- How to Calculate Pay for Defence Personnel? – Formula for Fixation of Pay October 23, 2018
- Grant of Entry Pay as per Finmin Order dated 28.9.2018 October 9, 2018
- Option for Re-Fixation of Pay on MACPS – NFIR October 4, 2018
- DoPT Orders 2018: Allowed to Re-Exercise the Option for Fixation of Pay under FR 22(l)(a)(1) August 29, 2018
- Grant of Benefit of Pay Fixation at Time of Promotion to Inspector Posts August 27, 2018
- Exercising of Option for Fixation of Pay – Finmin Clarification May 19, 2018
- Re-fixation of pay of Running Staff in 7th CPC pay level – NFIR April 3, 2018
- Option for Fixation of Pay on Promotion from the Date of Next Increment – MoD Order dated 22.3.2018 March 25, 2018
- Option for Pay Fixation in Revised Pay Scale: Confederation March 17, 2018
- Review of Pay fixation of DR ASOs appointed after 01.01.2006 February 6, 2018
- 7th CPC Pay Fixation for the trainee appointed on compassionate grounds in the -1S Scale September 25, 2017
- Revised methodology for fixing the pay of Running Staff – Pay Fixation Tables August 23, 2017
- 7th CPC Pay Matrix Anomaly: Anomaly in the Fitment Factor in Index rationalisation July 6, 2017
- Seeking of Clarification regarding Option & Pay Fixation in 7th CPC – BPMS July 1, 2017
- 7th CPC Pay Matrices and Option for Pay Fixation – NFIR discussed with Railway Board June 22, 2017
- Incorrect fixation of pay for Pharmacist – NFIR June 6, 2017
- 7th CPC Pay Fixation : Clarification regarding exercise of option under Rule 5 May 19, 2017
- Fixation of pay as per 7th CPC to State Government Employees on their appointment in Central Government May 11, 2017
- 7th CPC Pay Matrix Pay Fixation – Option for Railway Employees April 24, 2017
- Rounding off the amount of increment to next multiple of 10 for the year 2006, 2007 & 2008 – CGDA Orders April 24, 2017
- Pay fixation of SCS/Non-SCS officers promoted to IAS subsequent to the implementation of 7th CPC recommendations – reg. April 11, 2017
- Bunching of stages in the Revised pay structure – Clarification order issued by DoPT April 4, 2017
- Fixation of pay on promotion or MACP as per 7th CPC March 31, 2017
- 7th CPC Observation on linkage between RFD and APAR March 31, 2017
- Bunching of stages in the Revised pay structure in the grade of Assistant Section Officers – DoPT Orders February 28, 2017
- Training Equipment Operator Pay Level-5 of Pay Matrix – Draft RR February 10, 2017
- Central Secretariat employees seek pay parity August 18, 2016
- NFIR write to Railway Board to settle the issue of stepping up of pay of Seniors drawing less pay than the Juniors April 13, 2016
- Flaws in Pay Matrix of 7th CPC: Less benefit on grant of Promotional Pay Scale i.r.o. Next Pay Scale January 19, 2016
- Taking Leave on 1-1-2016 will affect the effective date of Pay Revision December 21, 2015
- Fixation of Pay on Promotion of pre-revised merged pay scales between 1.1.2006 and date of notification of CCS(RP)Rules 2008 October 16, 2015
- Clarification regarding fixation of pay of re-employed ex-servicemen pensioners retiring before attaining age of 55 years September 23, 2015
- Clarification regarding stepping up of pay of senior PAs of CSSS – Dopt Order August 28, 2015
- Benefits of Sixth Pay Commission to the employees who retired before 1.1.2006 August 10, 2015
- Stepping Up of Pay: DOPT Clarification orders issued on 25.5.2015 May 27, 2015
- Stepping up of pay of direct recruit Assistants at par with promoted UDC – Dopt Clarification on 25.5.2015 May 26, 2015
- Pay Fixation with one additional increment is admissible to those promoted to identical Pay Band / Grade Pay April 4, 2015
- Clarification regarding Pay fixation on grant of Non-Functional Upgradation January 14, 2015
- Fixation of pay of State Government Employees on their appointment in Central Government, subsequent to implementation of CCS (RP) Rules, 2008 August 28, 2014
- Regular Promotion for Central Govt Employees – MACP Upgradation and Pay Fixation March 20, 2014
- Rounding off the amount of Increment to next multiple of 10 February 27, 2014
- MoD clarifies the fixation of pay on direct recruitment by UPSC February 9, 2014
- Fixation of pay on promotion to a post carrying higher duties and responsibilities but carrying the same grade pay February 3, 2014
- Dopt issued orders on fixation of Pay of Assistants of CSS in the Revised Pay structure as per the CCS (Revised Pay) Rules, 2008 – Clarification regarding. January 3, 2014
- Clarification on Fixation of pay on direct recruitment by UPSC October 31, 2013
FAQ Related to 7th CPC Pay Fixation
How is the fitment factor calculated after the 7th pay commission?
As of January 1st, 2016, the essential number for converting the basic salary from 6th CPC to 7th CPC as recommended by the 7th pay commission is the fitment factor which has been set at 2.57.
How can I revise my basic salary in 7th pay commission?
The process for adjusting the salary under the 7th pay commission involves reference to the pay matrix table. By multiplying the basic pay with a fitment factor of 2.57, one can then locate the corresponding figure (either equal to or greater than) within the pay matrix table, corresponding to their specific pay level.
How do you calculate salary with fitment factor in 7th CPC?
Following the 7th pay commission’s implementation, the basic salary is determined by multiplying the previous basic pay by the fitment factor of 2.57, thereby aligning it with the corresponding pay level in the pay matrix table.
How calculated the fitment factor in the 7th CPC?
As of December 2015, the Dearness Allowance percentage was at 125%. The 7th CPC recommended an increase of 14.29% along with a fixed fitment factor of 2.57.