7th pay Commission had a lot of issues to study and then find solutions for and none of them were more important and crucial than coming up with a pay matrix that would actually work for all concerned whether they were policy makers or the beneficiaries. The solution that has not really created any row. So what really were the objectives that the panel was thinking of? Here is the reasoning: 

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Challenges before 7th Pay Commission: The idea was for the panel to come up with and provide a pay structure that is competitive, affordable, attractive, acceptable, forward looking and adaptable. Over and above that it had to be  simple and rational. The solution that the pay matrix provided was tpo ensure adequacy of the compensation structure. In its comment, commission said that the 'purpose of pay is to compensate the employees for work done, to motivate them to perform well.' In addition shoudl be able to attract talent to government service. It should also ensure that they are retained for teh long term. 

The fundamental design ensured it had an innovative design to make the remuneration structure attractive. The commission therefore adopted the need based minimum wage formula for designing the pay matrix. The rationalization of pay levels was done keeping this minimum pay as the base for all calculations. The panel recommended that the minimum pay at each level will be the entry pay for direct recruits for those levels. Over and above that each level was placed equidistantly. The various stages within a level moves upwards at the rate of 3 percent per annum. Due to this fact, the quantum of increase in pay on promotion will be substantial. This design will make the existing remuneration pattern in the government more attractive, the panel had said.

However, more than the 7th Pay Commission pay matrix, what is driving the controversy in the bureaucratic echelons, is the fitment factor. While the commission had gone for 2.57 times hike, the government was forced to mull a higher one. The number at the moment is stuck at 3.00 times. However, government employees themselves are demanding 3.68 times. So the basic salary has risen from Rs 7000 to Rs 18000 as per panel's recommendation.and this can jump to anything from Rs 21000 to Rs 26000 depending on how the government moves, going ahead.