The Government of India has set up the Pay Commission to determine the salaries of government employees. Following India's Independence, seven pay commissions have been formed to review and recommend the remuneration of all of the government’s civil and military divisions. On 25 September 2013, then Finance Minister P Chidambaram announced that the constitution of the 7th Pay Commission. It was approved by Dr. Manmohan Singh (Prime Minister of India from 2004 to 2014). The Commission was set up under the chairmanship of Justice Ashok Kumar Mathur. Its recommendations were expected to come into effect from 1 January, 2016, however, due to certain complications, the implementation saw a delay.
In June 2016, the Cabinet cleared all recommendations made by 7th Pay Commission report, which suggested about 23.55% overall hike in salaries, allowances and pension for over 1 crore government employees.
Minimum pay for government employees - The minimum pay (recommended) for an entry-level government employee is raised to Rs 18,000 per month from Rs 7,000. The minimum salary for an entry-level Class I officer is raised to Rs 56,100 per month.
Maximum pay for government employees: An increase in the maximum pay for government officials to Rs 2.25 lakhs every month for Apex Scale and Rs 2.5 lakhs every month for Cabinet Secretary and others of the same pay level (from the current pay of Rs. 90,000 per month).
Pay matrix: The status of a government employee to be decided by the level in the new Pay Matrix and not by Grade Pay. To ensure greater transparency, the Commission has recommended replacing the system of grade pay with a new pay matrix.
Work Related Illness and Injury Leave (WRIIL): Sick leave, hospital leave and special disability leave shall be merged into one new leave. This will be referred to as Work Related Illness and Injury Leave. Employees hospitalized because of work-related illnesses and injuries will receive complete pay and allowances.
Fitment: The Commission has recommended a uniform fitment factor of 2.57.
Government officials who fall under pay matrix level 1 to 5 are expected to see an increase in their fitment factor to 3.00 times of the basic pay.
Modified Assured Career Progression (MACP): The Commission has recommended enhancing the benchmark for MACP to 'Very Good' from ‘Good’. It has also proposed that employees who do not meet the benchmark for MACP will not receive annual increments or get promotion for the first 20 years of their service.
Military Service Pay (MSP): The Defence forces personnel shall continue to receive MSP for all ranks up to and including Brigadiers and people at the same level. The recommended MSP per month is as follows:
| Designation | Recommended by 7th CPC |
|---|---|
| Service Officers | Rs. 15,500 |
| Nursing Officers | Rs. 10,800 |
| JCO / ORs | Rs. 5,200 |
| Non-Combatants (enrolled) in the Air Force | Rs. 3,600 |
Allowances: After examining 197 allowances, the Commission has recommended abolishing 53 allowances and subsuming 37 in others.
Central Government Employees Group Insurance Scheme: The Commission has come up with a revised table of benefits with respect to Central Government Employees Group Insurance Scheme. The revised rates are as follows:
| Level of employee | Present monthly deduction | Recommended monthly deduction | Present insurance amount | Recommended insurance amount |
|---|---|---|---|---|
| 10 and above | Rs. 120 | Rs. 5,000 | Rs. 1,20,000 | Rs. 50,00,000 |
| 6 to 9 | Rs. 60 | Rs. 2,500 | Rs. 60,000 | Rs. 25,00,000 |
| 1 to 5 | Rs. 30 | Rs. 1,500 | Rs. 30,000 | Rs. 15,00,000 |
Pension: A revised pension formula has been recommended for employees of civil services, including the Central Armed Police Forces and defence personnel, who have retired before 1 January 2016. This formulation attempts to bring parity between existing pensioners and current retirees.
Disability Pension for Armed Forces: Rather than the present percentile-based disability pension regime, the Commission has recommended executing a slab-based system for disability element.
The pay scale for Indian Air Force employees will depend on the officer's rank, branch, area of posting and designation. The pay structure is as follows:
| 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 |
Monthly salary of Indian Air Force employees on the basis of 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 |
There is a wide difference in the income structure for defence and civil services. The pay structure for defence personnel comes down to their rank and experience. A 15-scale pay structure has been introduced, abolishing the earlier grade pay system. The pay scale for Indian Army and Defence personnel is as per the following table:
| Rank | Pay scale | Grade pay |
|---|---|---|
| Lieutenant | Rs. 15,600 - Rs. 39,100 | Rs. 5,400 |
| Major | Rs. 15,600 - Rs. 39,100 | Rs. 6,100 |
| Captain | Rs. 15,600 - Rs. 39,100 | Rs. 6,600 |
| LT Colonel | Rs. 37,400 - Rs. 67,000 | Rs. 8,000 |
| Colonel | Rs. 37,400 - Rs. 67,000 | Rs. 8,700 |
| Brigadier | Rs. 37,400 - Rs. 67,000 | Rs. 8,900 |
| Major General | Rs. 37,400 - Rs. 67,000 | Rs. 1,000 |
The post and designation determine which pay scale category every employee will come under. While a regular bank clerk earns a basic monthly income of Rs. 11,765, bank managers get a salary of Rs. 45,000 every month.
The 7th Pay Commission shall be implemented for BSF personnel as well. The below table shows the difference in pay scale for different posts in BSF as per 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 per month | Pay Band 2 - Rs. 29,900 to Rs.1,04,400 per month Grade Pay - Rs. 12,600 to Rs. 16,200 per month |
| 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 per month | Pay Band 3 - Rs. 46,800 to Rs.1,17,300 per month Grade Pay - Rs. 19,800 to Rs. 22,800 per month |
| 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 per month Grade Pay - Rs. 26,100 to Rs. 30,000 per month |
| Post | Previous pay | 7th Pay Commission pay scale |
|---|---|---|
| Commercial Clerks | Rs. 6,500 per month | Rs. 9,300 per month |
| Commercial Superintendents | Rs. 6,500 to Rs. 10,500 per month | Rs. 9,300 to Rs. 34,800 per month |
| Senior Commercial Clerk | Rs. 4,000 to Rs. 6,000 | Rs. 5,200 to Rs. 20,200 per month |
The Commission has raised the pay scale of CRPF employees.
| Post | Previous pay | 7th Pay Commission pay scale | Proposed grade pay |
|---|---|---|---|
| Constable | Up to Rs. 20,200 per month | Up to Rs. 60,600 per month | Rs. 7,200 per month |
| Head Constable | Rs. 5,200 to Rs. 20,200 per month | Rs. 15,600 to Rs. 60,600 | Rs. 9,400 per month |
| Assistant Sub-inspector | Rs. 5,200 to Rs. 20,200 per month | Up to Rs. 60,600 per month | Rs. 10,400 per month |
| Sub-inspector | Rs. 9,300 to Rs. 34,800 per month | Rs. 27,900 to Rs.1,04,400 per month | Rs. 12,600 per month |
| Inspector | Rs. 9,300 to Rs. 34,800 | Rs. 27,900 to Rs. 1,04,400 per month | Rs. 13,800 per month |
| Subedar Major | Not available | Up to Rs.1,04,400 per month | Rs. 14,400 per month |
| Assistant Commandant | Rs. 15,600 to Rs.39,100 per month | Rs. 46,800 to Rs. 1,17,300 per month | Rs. 16,200 per month |
| Deputy Commandant | Rs. 15,600 to Rs. 39,100 | Rs. 46,800 to Rs. 1,17,300 per month | Rs. 19,800 per month |
| Second-in Commandant | Rs. 39,100 per month | Rs. 1,17,300 per month | Rs. 22,800 per month |
| Commandant | Up to Rs. 67,000 per month | Up to Rs. 2,01,100 per month | Rs. 26,100 per month |
| DIG | Up to Rs. 67,000 per month | Up to Rs. 2,01,000 per month | Rs. 30,000 per month |
| IG | Rs. 37,400 to Rs.67,000 per month | Rs. 1,12,000 to Rs. 2,01,000 per month | Rs. 35,000 per month |
| ADG | Rs. 79,000 per month | Up to Rs. 2,25,000 per month | NA |
| SDG | Rs. 75,500 to Rs. 80,000 per month | Rs. 2,25,000 to Rs. 2,30,000 per month | NA |
| DG | Up to Rs. 80,000 per month | Rs. 2,50,000 per month | NA |
At present, the earnings of the Indian Engineering Service Officers are in line with the pay scale set by the 6th Pay Commission. Once the 7th Pay Commission is implemented, IES Officers are expected to earn 2.57 times higher than their current income. The pay scale for each post will be as per the following table:
| Post | Experience | Pay scale (basic + grade pay) |
|---|---|---|
| Assistant Executive Director | Fresher | Rs. 21,000 per month |
| Executive Director | 3 to 4 years in service | Rs. 22,200 per month |
| Joint Director | 8 years in service | Rs. 23,200 per month |
| Joint General Manager | 13 years in service | Rs. 47,400 per month |
| Additional General Manager | 20 years in service | Rs. 67,000 per month |
| Senior General Manager | 30 years in service | Rs. 80,000 per month |
| Chairman | 34 years in service | Rs. 90,000 per month |
At least five states in the country have implemented the recommendations of the 7th Pay Commission and announced hikes for their employees. These include Uttarakhand, Uttar Pradesh, Jammu & Kashmir, Haryana, Madhya Pradesh and Maharashtra. The Maharashtra government has said that it will pay the arrears to its employees under the 7th Pay Commission this year.
August 2018 is set to mark the start of the era of the 7th Pay Commission. The revised remunerations and allowances shall be in force from July’s salaries, which will in turn be paid by August.
