Implementation of 7th CPC for Defence Forces – An over view

The 7th Central Pay Commission (CPC) has been implemented for the Defence Forces vide Govt MoD Gazette Notification S.R.O. 12 (E) dt 03 May 2017 and S.R.O. 9 (E) dt 03 May 2017. This Info Brochure has endeavoured to combine the entitlements of each indl alongwith relevant authorities so that benefits of 7th CPC are exploited to the maximum.

2. The 7th CPC makes a major departure from its predecessors, in so far as the pay structure is concerned. The recommendations of 7th CPC involves dispensing with the existing Pay Bands and Grade Pay and instituted Pay Levels which correspond to the erstwhile Grade Pay. The 7th CPC has proposed a Pay Matrix for the purpose of pay fixation of the employees. The major features of the 7th CPC, as related to Army, are as under:-

(a) The recommendations to take effect from 01.01.2016.

(b) The minimum revised pay approved is Rs 21700/- {in place of Rs 8460/- (6460/- + 2000) and the maximum is Rs 250000/- (in place of Rs 90000/-)}.

(c) A Fitment Factor of 2.57 is applied for transition from 6th CPC to 7th CPC.

(d) Annual increment will be calculated by transiting one stage vertically down in the same Level.

(e) MACP shall continue to be granted without any changes.

(f) Separate Pay Matrix for Defence Personnel and Military Nursing Services Officers.

(g) All Allces have been rationalized.

(h) Most of the Allces have been raised corresponding to the rise in Dearness Allowance (DA).

(j) House Rent Allowance (HRA) shall be revised to 24%, 16% and 8% of Basic Pay in X, Y and Z Cities respectively. Rate of HRA will be revised to 27%, 18% and 9% when DA crosses 50% and further to 30%, 20% and 10% when DA crosses 100%.

(k) Non Practicing Allowance (NPA) and Military Service Pay (MSP) not to be included for calculating HRA, Composite Transfer Grant (CTG) and Annual Increment.

(l) All non-interest bearing advances to be abolished.

(m) Ceiling for Gratuity to be enhanced to Rs 20 lakhs wef 01.01.2016 and thereafter increase of 25% to be allowed whenever DA rises by 50%.