7th Pay Commission Latest News: 7th CPC may see changes in employee increment rule; promotion, salary hike to happen in this way

by Shubham Shukla 

7th Pay Commission latest news: The government is likely to bring major changes in rules governing salary increment of central government employees. Under these changes, the rules regarding promotion of central employees will likely change. This means that salary increments based on promotions will change.  Zee Business’ Shubham Shukla reports.

Under the 7th CPC, different pay matrix have been made for different levels of the central employee positions. The pay matrix is based on the Fitment factor and they were implemented in 2016 based on the recommendations made by the 7th Central Pay Commission.

After the new pay matrix was introduced, the salary of employees went up by 14 per cent. But now the question is that what will the new pay matrix be like? What will be the new formula for promotion and increment?

Automatic Pay revision mechanism likely to be considered:

There have been news from some quarters that ther will not be any other pay commission after the 7th Pay Commission. But this is not true. There I likelihood of the 8th pay commission, though there is no deadline given to it.

The government, however could make changes in the existing rules governing employee promotion and increment.  It can introduce an auto pay revision system for promotion and where there will be an automatic promotion on DA (Dearness Allowance) of 50 per cent. The grade of the employees will be automatically raised.

Harishankar Tiwari, former Assistant Secretary General of All India Audit and Accounts Association has told Zee Business that that the Pay Commission has been there for a long time now.

And it is not important that Commission will only decide salary increment and promotion. The government must think a new system to govern promotion of central government employees.

Any new activity regarding the new pay commission will start only after 2024. Till then th existing rules will gvern promotion.

Central Government employees’ salary must be revised from time-to-time.:

The recommendations of the 7th Pay Commission were approved on 28 June 2016. According to this the minimum salary of central employees was increased from Rs 7000 to Rs 18000. In the recommendations by the 7th CPC, it was said that the government must consider revising pay of central employees from time-to-time and not just once in 10 years.

In the 6th CPC, basic pay at the Entry level was Rs 7000   (Pay Band 5200+Grade Pay Rs 1800). While the DA was at 125 per cent which was higher than the basic pay. In the 7th pay commission, gross pay was increased while DA was revised downwards. The employees are currently getting 34 per cent DA which is expected to go up to 38 per cent from 1 July 2022 onwards. The announcement on this is likely to come in September.

After the implementation of 7th CPC recommendations

6th CPS                       7th CPC

Rs 7000                       Rs 18000

Rs 13500                     Rs 35400

Rs 21000                     Rs 56100  

Rs 46100                      Rs 118500  

Rs 80000                      Rs 225000  

Rs 90000                      Rs 250000  

What is Pay Matrix?

Under the 7th Pay Commission, salary is decided as per the pay matrix. Paymatrix has been linked to Fitment factor. Initially, the salary was decided on the basis of fitment factor of 2.57 times.