The implementation of the 7th pay commission recommendations by central and many state governments has put more money in the CG employee hands. It helped them to improve quality of their lives and thus, reduced the burden of inflation.
We are well aware that a lot of time has passed since 7th CPC recommendations were submitted to the government. It not only proposed a new pay structure, but also a uniform fitment factor. Still, there are a lot of doubts about how salaries were fixed according to the new pay structure.
Here we will provide you with detailed explanation that was offered by the 7 Pay Commission report:
Arriving at a new salary
As per the 7th Pay Commission report, “The fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57. It further added that, the figure so arrived at should be located in the new pay matrix, in the level that corresponds to the employee’s grade pay on the date of implementation. Besides in cases where the Commission has recommended a change in the existing grade pay.
As per the pay panel, "If the identical figure is not available in the given level, the next higher figure closest to it would be the new pay of the concerned employee.
Check below to understand the process for locating one's pay based on the new pay matrix:
Step 1: Identify Basic Pay drawn by an employee as on the date of implementation.
Step 2: Multiply that amount with 2.57, round-off to the nearest rupee, and obtain your result.
Step 3: That result or the next higher figure closest to it in the Level assigned to his/her grade pay, will be the new pay in the new pay matrix.
However, if the result is less than the starting pay of the Level, then the pay will be equal to the starting pay of that level.
