7th CPC Pay Matrix Table for Defence Force Personnel 
CPSE Pay Revision 2017 – Calculation of Annual Increment
Annual Increment | Promotion Increment | Stagnation increment
Annual Increment
The pay-structure for CPSEs executives effective from 1.1.2007 provides for annual increment of 3% of Basic Pay. It may be mentioned that the 6th Central Pay Commission as well as 7 th Central Pay Commission had granted annual increment at the rate of 3% of BP.
In light of above, this Committee recommends that annual increment should be allowed to all CPSEs at the rate of 3% of Basic Pay. Aggregate amount to be rounded off to next Rs.10/-.
There is no uniformity in the date of granting Annual increment amongst the CPSEs; and the CPSEs follow the date(s) for annual increment as per their established Human Resources (HR) policy. The CPSEs shall accordingly continue to grant annual increment on the revised pay on the respective due date, as applicable in the CPSE
The rate of annual increment has been retained at 3 percent.
Promotion Increment
In the event of promotion / elevation of executives to next grade, the executives are entitled to an increment. As per the recommendation of 2nd PRC, the rate of promotion increment has been at par with the Annual increment rate (i.e. 3%) in the CPSEs.
The Committee recommends that increment on promotion shall continue to be at with the Annual increment rate (i.e. 3% of Basic Pay). Aggregate amount to be rounded off to the next Rs.10/-.
Pay-related allowances / increments
Increments – Annual increments may range from 2% to 4% of Basic pay depending on the performance of individual as determined by Performance Appraisal System and the capacity of the CPSE to pay.
Stagnation – The individuals who have reached the maximum of the Scale may be allowed to draw maximum of 3 stagnation increments every 2 years at 2% of Basic Pay provided they get a performance rating ‘Good’ or above. Upto a maximum of 3 stagnation increments for those who reach the maximum of their scales.
| More recommendations… |
|---|
| Report of 3rd Pay Revision Committee for CPSEs |
| Revised Pay Scales effective from Jan 2017 |
| Fitment Benift and Methodology – Click to read more |
| Calculation of Annual Increment – Click to read more |
| Dearness Allowance Calculation – Click to read more |
| Rates of House Rent Allowance (HRA) – Click to read more |
| Perks and Allowances – Click to read more |
| Retirement Age Recommendations – Click to read more |
| Bunching of Pay – Click to read more |
| Retirement Benefits – Click to read more |
| Voluntary Separation Scheme (VRS) – Click to read more |
| Leave Regulations – Click to read more |
| Leased Accommodation – Click to read more |