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In arriving at the above it has been borne in mind that the year on year increase, in both Pay and in Pensions, has averaged about 11 percent. This takes into account the annual increments, the increase on account of dearness allowances, as well as pay-outs that are indexed to the rate of DA.

The increases reflected above are those which would be beyond the normal increase, and solely on account of the implementations of the Seventh CPC. These figures include the increases on account of all segments of Government employees, viz.

The estimate related to pension is based on the new formulation being recommended by the Commission, which is more equitable than the existing formulation. Budget Impact. Borne on the. General Budget. Railway Budget. As mentioned earlier, this represents an overall increase of Of this, New Pay Structure: The present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed.

The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix. Separate pay matrices have been drawn up for civilians, defence personnel and for military nursing service. All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. The starting point of the matrix is the minimum pay which has been arrived based on 15 th ILC norms or the Aykroyd formula.

Hence the starting point now proposed is 2. This fitment factor of. Annual Increment : The rate of annual increment is being retained at 3 percent. Entry Pay: The differential of entry pay between new recruits and promoted employees at various levels has been done away with. This will continue to be administered at 10, 20 and 30 years as before.

In the new Pay matrix, the employees will move to the immediate next level in the hierarchy. The Commission has proposed withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service. The commencement of the Defence Pay Matrix for combatants corresponds to the existing GP , which is the induction level for Sepoys and equivalent.

The Pay Matrix designed for the defence forces personnel is more compact than the civil pay matrix keeping in view the number of levels, age and retirement profile of the service personnel. The MSP per month recommended is as follows:. Service Officers. Nursing Officers. Non Combatants Enrolled in the Air Force. The incentive structure will henceforth be linked with the qualifications as follows:. However this benefit should be limited to a total of three upgrades in the entire service career, taking the combined length of the regular employment and the course of reemployment as defence service corps personnel.

The first benefit of MACP may be extended to them after a period of eight years from their date of re-employment, in case they do not get a promotion during this period. Grant of Annual Increment to Recruits: The benefit of grant of first annual increment to recruits will be reckoned from date of enrolment. Short Service Commissioned Officers: Short Service Commissioned Officers will be allowed to exit Armed Forces any time between 7 and 10 years of service with a terminal gratuity equivalent of They will further be entitled to a fully funded one year Executive Programme or a M.

Headquarters Staff: Parity in pay, up to the rank of Assistants, between the field staff and headquarter staff is recommended. It is recommended that the level of Assistants of CSS be brought at par with Assistants in the field offices who are presently drawing GP Accordingly, in the new pay matrix the Assistants of both Headquarters as well as field units will come to lie in Level 6 in the pay matrixand pay fixed accordingly.

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Sign in. Forgot your password? Get help. Privacy Policy. Password recovery. Central Government Employees News. Accordingly, the pay of T will be fixed in Level 7 at Rs.

Step 3: The figure so arrived at, i. For example an employee H is presently drawing Basic Pay of Rs. After multiplying Rs. This is rounded off to Rs. The level corresponding to GP is level 13, as may be seen from Table 4, which gives the full correspondence between existing Grade Pay and the new Levels being proposed.