7th Pay Matrix Table

As mentioned earlier, a Pay Commission acts as an administrative system for the Central Government to review and examine the existing salary structure of government employees. It then recommends changes in basic pay, allowances, benefits, bonuses etc.

Moreover, a Pay Commission reviews existing pension schemes and retirement benefits. These recommendations are made based on the economic conditions and the available sources in the country, and bonus recommendations are made depending on the performance and productivity of the employees.

The 7th Pay Commission, under the chairmanship of Justice Ashok Kumar Mathur, submitted a report on 19th November 2015.

Some of the highlights of the 7th Pay Commission include:**

Pay Matrix: With the 7th Pay Commission, the Pay Bands and Grade Pay were dissolved, and Pay Matrix came into force. The 7th Pay Commission matrix is designed differently for different groups like civilians, defence personnel, nursing services etc.

Minimum Pay: The Commission increased the minimum pay for employees from ₹7000 to ₹18000 per month.

Increment Rate: The increment rate was fixed at 3%.

New Structure: The Commission approved the Index of Rationalization, and a minimum pay was set at each level of the Pay Matrix depending on factors like responsibility and increasing roles as per hierarchy.

Fitment Factor: A fitment factor of 2.57 is applicable in all levels 7th CPC Pay Matrix. This increases the salary by at least 14.29%.

Health Insurance Plan: The commission recommended raising the monthly contribution towards the Central Government Employees Group Insurance Scheme (CGEGIS); however, this recommendation was not accepted. The government proposed introducing a customised group insurance scheme with high coverage and low premium.

Gratuity: The ceiling of gratuity is increased from ₹10 lakhs to ₹20 lakhs.

Ex-Gratia Lump Sum Compensation: The limit has been increased from ₹10-20 lakhs to ₹24-45 lakhs.

The 7th Pay Commission designed the Pay Matrix, considering the opportunities available to the public outside the government sector. These sectors have shown immense growth and competition to the existing government employment opportunities. Thus, this pay matrix was designed to attract and retain a talented workforce.

The 7th Pay Commission Matrix included the grade pay and presented all the pay levels in a straightforward chart. The levels have also been rationalised, showing a logical employee pay progression.

Pay Matrix: What is it?

A pay matrix is an easy-to-understand pay scale chart that shows the salary ranges that come into force when any changes to the government employee’s salary structure are applied. With the help of this pay matrix, an individual can view their pay level, where they fit in and the level of progression.

In addition, the pay matrix table enables government employees to assess their current status and understand their potential growth over the years.

Pay Matrix Table: Dimensions

The 7th Pay Commission Matrix is a number table comprising o 760 cells with 19 columns and 40 rows. The table is applicable for over 30 lakh central government employees.

The pay matrix table has two dimensions – horizontal and vertical range. The horizontal range corresponds to the ‘functional role in the hierarchy’ and is assigned numbers 1, 2, 3 and so on till 18. The vertical range denotes the ‘pay progression’ within each level. The vertical range also indicates the annual financial progression of 3% within each level. The starting point of the matrix, which is the minimum pay for the employee, is arrived at based on the 15th ILC norms or the Aykroyd formula.

Pay Matrix Table: Advantages

Below are some of the advantages of the 7th CPC Pay Matrix:

Helps to merge the grade pay and pay bands into one easy-to-understand and combined level

Solves issues regarding PB-3 and PB-4

Reduces the difference between various pay bands

Simplifies the fixation of revised pay

Resolves differential entry pay issue

Avoids complications in annual progression, regular promotion, and span of service

Provides better transparency compared to earlier systems

Ease in the administration process

Provides an error-free and holistic view of the pay system

Grade Pay: 1800 to 2800

PB-1: 5200 to 20200

Level: 1 to 5

Grade Pay: 4200 to 5400 PB-2: 9300 to 34800 Level: 6 to 9

Grade Pay: 5400 to 7600 PB-3: 15600 to 39100 Level: 10 to 12

Grade Pay: 8700 to 10000 PB-4: 37400 to 67000 Level: 13 to 14

No Grade Pay ** **Level: 15 to Level 18

The Pay Commission was always of the opinion that health insurance for government employees and pensioners plays a crucial role in ensuring complete financial coverage for the employees, pensioners and their dependents in the long run.

The 4th CPC had thus recommended introducing a health insurance scheme for Central Government employees and pensioners. It had then recommended that the scheme be made available voluntarily by paying a prescribed contribution. However, it recommended the scheme be compulsory for new employees who join after introducing it.

Many healthcare insurance companies these days provide comprehensive healthcare coverage. Therefore, with proper tie-ups with these insurance providers, the government aimed to enhance the reach of the proposed Health Insurance Scheme.

The Central Government Health Scheme (CGHS) is an all-inclusive National Health Insurance Scheme (NHIS) offered via authorised and registered CGHS dispensaries, allopathic clinics and AYUSH centres.

The important aspects of the CGHS are:

• General consultation and dispensary services

• Provision of necessary medicines

• Specialist consultation services

• Pathological and imaging tests, such as blood tests, X-rays, etc.

• Hospitalisation

• Services related to maternity, child health and family welfare

• Health-based knowledge and education.

The 7th Pay Matrix is a convenient table for all central government and defence employees to know where they stand and their progression in the category over the years. In addition, the Central Government Health Scheme (CGHS) offered by the Central Government through the Pay Commission ensures proper healthcare facilities are available to its employees and pensioners.

Apart from central and state government insurance schemes, private insurance providers like Tata AIG offer affordable health insurance plans. Our MediCare health insurance plans with three variants are curated to fulfil your medical insurance requirements.

The benefits of a health insurance plan are many. Apart from providing financial support in medical emergencies, health insurance tax benefits cannot be ignored.