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7th Pay Commission

The Government of India is planning to implement the 7th Pay Commission’s recommendations by January 2017. Uttar Pradesh has already approved the 7th Pay Commission and has announced that it will be implemented by January 2017.

Highlights of the recommendations of the 7th Pay Commission:

Recommended minimum pay for government employees: The minimum pay of a newly recruited government employee at entry level is increased from Rs.7,000 to Rs. 18,000 per month. For a newly recruited Class I Officer, the minimum salary is increased to Rs.56,100 per month.

Recommended maximum pay for government employees: The 7th Pay Commission also recommends to increase the maximum pay for government employees to Rs.2.25 lakhs per month for Apex Scale and Rs.2.5 lakhs per month for Cabinet Secretary and others working at the same level.

Pay Matrix: Considering the issues that exist in the Grade Pay Structure, the 7th Pay Commission has recommended a new pay matrix. Once the 7th Pay Commission is implemented, the status of a government employee will not be decided by Grade Pay but by the level in the new Pay Matrix.

New Pay Structure: Ever since Central Government employees heard about the Pay Matrix system, they have questions about their grades and levels. The New Pay Structure recommended by the 7th Pay Commission have included all existing levels and have not introduced any new levels.

Work Related Illness and Injury Leave(WRIIL): The Pay Commission recommends full pay and allowances to be granted to all employees who are hospitalized due to WRIIL.

Fitment: The 7th Pay Commission recommends a uniform Fitment Factor to eliminate partiality and discrimination in the system. The Pay Commission has recommended a uniform Fitment Factor of 2.57 for all employees.

Annual increment: The Pay Commission has suggested retaining the annual increment of 3% p.a.

Modified Assured Career Progression(MACP): The 7th Pay Commission aims at improving the quality of services offered by the Government of India and thereby focuses on individual performance. According to the report, performance benchmarks of MACP has been altered and made stricter. They have made the performance indicator stricter by adding “Very good” performance level which was “Good” before. The report goes on to recommend that no annual increments should be given to employees who do not meet their performance level and no promotions will be given if MACP is low for the first 20 years in service.

Military Service Pay(MSP): The 7th Pay Commission recommends MSP to be paid for Defence Personnel only. MSP is the compensation paid to people offering military service in India. MSP will be payable for all ranks inclusive of Brigadiers and people at the same level.

Allowances: The Cabinet has examined a total of 196 allowances which are currently present and have abolished 51 allowances, retaining 37 allowances.

House Rent Allowance: As the 7th Pay Commission aims at increasing the basic pay of government employees, the Pay Commission has recommended that the House Rent Allowance also increase by 24%. The Commission also states that HRA will increase to 27%, 18%, and 9% when DA (dearness allowance) crosses 50%. HRS will further increase and will be paid at 30%, 20%, and 10% when DA crosses 100%.

Advances: Apart from Personal Computer Advance and House Building Advance, 7th Pay Commission has abolished all non-interest bearing advances. It is also noteworthy that House Building Advance has been increased from Rs.7.5 lakhs to Rs.25 lakhs.

Central Government Employees Group Insurance Scheme (CGEGIS): The Pay Commission has made some changes to Central Government Employees Group Insurance Scheme. The recommended rates are as follows:

Level of employee Present monthly deduction in Rupees Present insurance amount in Rupees Recommended monthly deduction in Rupees Recommended insurance amount in Rupees
10 and above Rs.120 Rs.1,20,000 Rs.5000 Rs.50,00,000
6 to 9 Rs.60 Rs.60,000 Rs.2500 Rs.25,00,000
1 to 5 Rs.30 Rs.30,000 Rs.1500 Rs.15,00,000

Medical changes: The 7th Pay Commission has recommended a Health Insurance Scheme for Central Government employees and pensioners. The report also recommends cashless medical benefit for pensioners outside CGHS area.

Pension: The Commission suggests a revision in the current pension scheme. They recommend a revised pension formulation for civil employees including CAPF and Defence Personnel who have retired before 01.01.2016. The new formulation will focus on bringing parity between existing pensioners and current retirees. The new pension will be calculated by placing the past pensioners on the new Pay Matrix system. Later, the pension amount will be arrived at by adding the number of increments a pensioner has earned in that level while in active service at the rate of 3% p.a. 50% of the so arrived amount will be the new pension. A pensioner will get a multiple of 2.57 times the current basic pension.

Gratuity: The Commission recommends the ceiling of gratuity to be increased from the current Rs.10 lakh to Rs.20 lakh. They further recommend that the ceiling on gratuity may be raised by 25% when the DA rises by 50%.

Disability Pension for Armed Forces: Instead of the current percentile based disability pension regime, The Commission has recommended implementing a slab-based system for disability element.

Pay scale for Indian Air Force

According to the recommendations made in the 7th Pay Commission, the pay scale for Indian Air Force employees will be based upon the officer’s rank, an area of posting, branch, and designation. The below table shows the detail pay structure:

Pay structure Amount payable
Minimum grade pay for Indian Air Force employees Rs.5,400
Pay band Rs.15,600
Military service pay Rs.6,000
Kit maintenance Rs.500

They have also revised the allowances paid to Indian Air Force employees. The revised allowance structure is as follows:

Allowance type Amount
Dearness Allowance (Which is usually 80% of Gross Emoluments) Rs.21,600
Flying Allowance (Which is payable for officers in flying branch) Rs.11,250
Travel Allowance Rs.3,200 in metro cities and Rs.1,600 for other cities and towns
Technical Allowance (Which is payable for officers in technical branch) Rs.2,500

Monthly salary of Indian Air Force employees based on their rank

Rank Monthly salary amount
Flying Officer Rs.11,250
Air Commodore Rs.13,125
Flight Lieutenant Rs.13,750
Squadron Leader Rs.17,500
Captain Rs.17,500
Wing Commander Rs.17,500

Pay scale for Anganwadi Workers

Malnutrition among kids is one of the pressing issues in India. To put an end to malnourishment among children, the Government of India recruited local workers to work closely with children and ensure that the government-provided food reaches them. The pay scale for Anganwadi workers is the lowest in the government pay structure. They do not have a grade pay system in many states in India apart from Tamil Nadu. However, they receive allowances like:

Allowance Amount
Festival allowance Rs.450-Rs.500
HRA Rs.120-Rs.500
Dearness Allowances Rs.350-Rs.720
Fixed medical allowances Rs.200

Pay Scale for Army and Defence Personnel

The pay structure for civil services and defence services differ widely. Revisions have been made to the Indian Army pay scale after the 7th Pay Commission was passed. The pay scale for defence personnel depends on rank and experience. Also, a new 15-scale pay structure has been introduced, eliminating the previous grade pay system. The pay scale for Indian Army and defence personnel are as follows:

Rank Pay scale Grade pay Comments
Lieutenant Rs.15,600-Rs.39,100 Rs.5,400 Please note that this amount will be paid on commission
Major Rs.15,600-Rs.39,100 Rs.6,100 Please note that this is applicable after completing 2 years
Captain Rs.15,600-Rs.39,100 Rs.6,600 Please note that this is applicable after completing 6 years
LT Colonel Rs.37,400-Rs.67,000 Rs.8,000 Please note that this is applicable after completing 13 years
Colonel Rs.37,400-Rs.67,000 Rs.8,700 NA
Brigadier Rs.37,400-Rs.67,000 Rs.8,900 NA
Major General Rs.37,400-Rs.67,000 Rs.10,00 NA

Allowance paid to Indian Army Officers

Allowance Type Paid to Amount
Hard areas allowance Applicable only to people who are posted in hard areas 25% of the overall basic pay or Rs.6,750 per month
Kit maintenance allowance Applicable to all officers Rs.400 per month
High altitude climate allowance Applicable to officers who are posted in high altitude Rs.11,200-Rs.14,000 per month
House Rent Allowance Applicable to officers who do not avail government accommodation facility 10-30% of the basic pay of the officer
Siachen Applicable for officers who are posted in Siachen borders Rs.11,200-Rs.14,000 per month
Transport Allowance Applicable to all officers For A1 cities and towns, Rs.3,200 is paid and for all other cities and towns, Rs.1,600 will be paid
High Active Field Area Allowance Applicable for officers who work in high-active field area Rs.6,780-Rs.4,200 per month
Special forces allowance Applicable to officers who work in special forces Rs.9,000 per month
Modified field area allowance Applicable to officers who are posted in modified field areas Rs.1,600 per month
Flying parachute pay Applicable to officers who work as aviators of the army Rs.9,000-Rs.12,000 per month

Pay Scale for Assistant Professors

7th Pay Commission has made sure that every Central and State Government employee gets a salary hike irrespective of their post. Assistant professors also get a salary hike. The pay scale for Assistant Professors according to the upcoming 7th Pay Commission are expected to range anywhere between Rs.46,800 to Rs.1,17,300. The grade pay is expected to be set at Rs.19,800. Previously, in the 6th Pay Commission, the pay scale of Assistant Professors was between Rs.15,600 to Rs.39,100 and the grade pay was Rs.6,600. There is no changes made to entry level pay in the 7th Pay Commission. It remains at Rs.25,530 per month.

Apart from the above changes, other changes have been made to the allowances received by Assistant Professors. The HRA has been increased based on the city they work in. The hike in HRA can be 24%, 16%, or 8% depending on the DA of the employees. The employee is eligible for HRA if the DA crosses 50% and 100%.

Pay scale for Assistant Station Master

Assistant Station Master earns a decent salary in the Indian Railway System as they play a crucial role in managing the railway station. The grade pay for Assistant Station Master has been changed as per the recommendations made under the 7th Pay Commission but their basic pay remains the same. The grade pay of Assistant Station Masters is Rs.2,800 per month currently. 7th Pay Commission has recommended the grade pay of Assistant Station Masters to Rs.4,200 per month. However, as there is a debate about eliminating the role of Assistant Station Masters as they do the same job as Station Masters, the revisions suggested is put on hold. For now, they will reap the benefits of the 6th Pay Commission which are as follows:

Details Amount
Pay Scale Rs.5,200 to Rs.20,200
Average Basic Pay Rs.8,560
Grade Pay Rs.2,800
Allowances and benefits HRA, Transport Allowance, and Pension

Pay scale for Associate Professor

The pay scale for Associate Professor will change from 1st January 2017 with the implementation of 7th Pay Commission. Associate Professors are eagerly waiting for the 7th Pay Commission to be implemented in the beginning of 2017 as it will bring a great difference to their pay scale. Previously, the Associate Professor’s salary slab was between Rs.37,400 to Rs.67,000 and their grade pay was Rs.8,900 per month. If the 7th Pay Commission is implemented, the salary slab of Assistant Professors will be between Rs.1 lakh to Rs.2 lakh and their grade pay will be Rs.27,000 per month. According to reports, around 47 lakh Assistant Professors and about 52 lakh pensioners will benefit from this plan.

Pay scale for Bank Officers

Pay scale for each employee is different as it depends on their post and designation. While an ordinary bank clerk draws a basic monthly salary of Rs.11,765, bank managers draw a monthly salary of Rs.45,000.

Pay scale for Probationary Officer

Currently, a Probationary Officer in a bank draws a base salary of Rs.14,500 per month apart from the Dearness Allowance of Rs.12,781 and House Rent Allowance of Rs.1,087. Going by this calculation, the total salary earned by a Probationary Officer is Rs.28,368 per month. If the 7th Pay Commission is implemented, the pay scale of a Probationary Officer will be as follows:

Base salary Rs.27,865
DA Rs.10,839
HRA Rs.2,786
Total monthly salary Rs.41,490

Pay scale for other bank employees

Post Pay scale
Bank Clerk Rs.1,18,663 to Rs.3,23,034 per year
Bank Officer Rs.1,77,812 to Rs.6,23,164 per year
Assistant Bank Manager Rs.2,38,423 to Rs.6,25,725 per year
Bank Manager Rs.3,29,734 to Rs.10,71,284 per year

Pay scale for BPCL employees

Bharat Petroleum Corporation Limited(BPCL) is an Indian state-owned oil refining and distributing company in India. BPCL operated two large refineries in Mumbai and Kochi. It is also listed in the Fortune Global 500 of the world’s biggest corporations in the year 2016. BPCL employees are paid according to their post and contribution. The pay scale for an executive, who is the lowest in rank and order can range anywhere between Rs.24,900 to Rs.50,500 per month which is a handsome pay for the last level in the management. On the other hand, Managing Director draws about Rs.80,000 to Rs.1.25 lakhs per month.

It is a misconception that BPCl employees fall under the government’s salary norms. 7th Pay Commission does not affect the pay structure of BPCL employees. A separate pay revision committee decides the pay scale of BPCL employees. Currently, the pay scale for BPCL employees are as follows:

Post Pay scale
Executives/Engineers/Officers Rs.24,900 to Rs.50,500
AM/Senior Officer/Senior Engineer Rs.29,100 to Rs.54,500
Deputy Manager Rs.32,900 to Rs.58,000
Manager Rs.36,600 to Rs.62,000
Senior Manager Rs.43,200 to Rs.66,000
Chief Manager Rs.51,300 to Rs.73,000
Deputy General Manager Rs.51,300 to Rs.73,000
General Manager Rs.51,300 to Rs.73,000
Executive Director Rs.62,000 to Rs.80,000
Director Rs.75,000 to Rs.1 lakhs
C & MD Rs.80,000 to Rs.1.25 lakhs

Pay scale for Border Security Force (BSF) :

7th Pay commision will be implemented for BSF personnels, too. Currently, pay scale for BSF is according to the 6th Pay Commission. From BSF constables to Assistant Sub Inspectors, all employees under BSF gets paid as per pay band 1. The salary scale in pay band 1 ranges from Rs.5,200 to Rs.20,200 per month and the grade pay ranges from Rs.1,800 to Rs.2,800 per month. Refer to the below table for the difference in pay scale for various posts in BSF according to the 7th pay commission:

Post Current pay scale 7th Pay Commission pay scale
Constables/Assistant Constables/Assistant Sub Inspector Pay Band 1- Rs.5,200 to Rs.20,200 per month Grade Pay- Rs.1,800 to Rs.2,800 per month Pay Band 1- Rs.15,600 to Rs.60,600 per month Grade Pay- Rs.5,400 to Rs.8,400 per month
Servicemen/Servicewomen/Sub Inspector/Major Pay Band 2- Rs.9,300 to Rs.34,800 per month Grade Pay- Rs.4,200 to Rs.4,800 Pay Band 2- Rs.29,900 to Rs.1,04,400 per month Grade Pay- Rs.12,600 to Rs.16,200
From Assistant Commandant up to the rank of Second in Command Pay Band 3- Rs.15,600 to Rs.39,100 per month Grade Pay- Rs.5,400 to Rs.7,600 Pay Band 3- Rs.46,800 to Rs.1,17,300 per month Grade Pay- Rs.19,800 to Rs.22,800
From Commandant up to the rank of Special Director General Pay Band 4- Rs.37,400 to Rs.67,000 per month Grade Pay- Rs.8,700 to Rs.10,000 per month Pay Band 4- Rs.1,12,200 to Rs.1,00,100 Grade Pay- Rs.26,100 to Rs.30,000

Judge pay scale under 7th Pay Commission

Post Pay scale per month
High Court Judge Rs.80,000 per month
Supreme Court Judge Rs.90,000 per month
Chief Justice of High Court Rs.90,000 per month
Chief Justice of Supreme Court Rs.1 lakh per month
Junior District Judge Rs.12,000 per month
Senior District Judge Rs.21,000 per month
Super Time Scale District Judge Rs.24,000 per month

Pay scale for Lawyers

Though lawyers play a major role in establishing justice in the country, they get paid lower than other departments. 7th Pay Commission may eliminate grade pay system for lawyers and increase their basic salary. Currently, the pay scale of lawyers in India is as follows:

Post High court lawyers Supreme court District court lawyers
Criminal Rs.15,000 per month Rs.20,000 per month Rs.10,000 per month
Corporate Rs.20,000 per month Rs.27,000 per month Rs.15,000 per month
Civil Rs.20,000 per month Rs.20,000 per month Rs.10,000 per month
Family and divorce Rs.15,000 per month Rs.15,000 per month Rs.10,000 per month

 

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