ITR Filing Deadline Missed? Last chance to claim your tax refund.

ITR Filing Deadline Missed?
You Still have Chance to File Late Return

  • TrustedTrusted by 2 Million+ Users
  • User Rating4.9 Star User Rating
  • Secure2500 Cr. Taxes Saved Already
ITR Filing Deadline Missed?
linkedin
whatsapp

7th Pay Commission Pay (CPC) Matrix Table

Updated on: 10 Sep, 2024 04:51 PM

The Government of India has appointed a pay commission to review and recommend desirable and possible changes to the salary structure of central government employees.

In each commission session, stakeholders present their demands regarding the change required in the pay structure. Later the commission decides the changes that need to be incorporated. The pay commission set by the Indian Government uses a pay matrix during the meeting to discuss and review the change in pay structure.

Employees can check their present pay level and future growth throughout their careers through this matrix. The latest matrix present is the 7th Pay matrix which is being followed to decide the pay level of any employee under the central Government. A 23.35% hike has been seen in the basic pay and allowances given to government employees since the 7th Pay matrix was introduced.

The 7th central pay commission (CPC) matrix has been formed while representing all 6th CPC running pay bands incorporated with the grade pay and multiplied with the fitment factor ranging from 2.56 to 2.72 in one table. The fitment character is equally multiplied by the pay matrix’s basics in each row. If we talk about the 7th CPC pay matrix, the current basic pay of employees will be multiplied by the new fitment factor. The fitment factor for the 7th pay matrix would be a pay hike of around 2.67 times for employees and pensioners.

Budget 2024 Update

FM Nirmala Sitharaman has made two announcements for those opting for the new tax regime.

First, the standard deduction for salaried employees is proposed to be increased from Rs 50,000/- to Rs 75,000/-. Similarly, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000/- to Rs 25,000/-.

Second, in the new tax regime, the tax rate structure is proposed to be revised, as follows:

  • 0-3 lakh rupees - NIL tax
  • 3-7 lakh rupees - 5% tax
  • 7-10 lakh rupees - 10% tax
  • 10-12 lakh rupees - 15% tax
  • 12-15 lakh rupees - 20% tax
  • Above 15 lakh rupees - 30% tax

As a result of these changes, a salaried employee in the new tax regime stands to save up to Rs 17,500/- in income tax.


What is the 7th CPC Pay Matrix table?

The 7 Pay matrix table was designed by the 7th pay commission of India in 2016 that depicts a rational chart to show the salary structure per the pay levels. After a complete discussion of the 7th pay commission and the stakeholders to bring more transparency in the salary structure and the same pay level for entry-level employees, the 7 Pay matrix table was introduced as a simple chart. The standard pay for employees at the entry-level, transparent pay structure, and standard treatment of similar cadres are a few of the demands considered in the purview of the 7th pay commission pay matrix.

The 7th pay matrix table is a number table with 760 cells and applies to over 30 lakh central government employees. The table contains 19 columns and 40 rows. The horizontal range is assigned numbers 1 to 18 that resemble the functional role in the hierarchy, while the vertical range specifies ‘pay progression’ within that level. The vertical range also indicates the annual progression of 3.00% within each level. The starting point of the table denotes the minimum pay as per the 15th ILC norms or the Aykroyd formula.

Benefits of 7th CPC pay matrix

The 7th Central Pay Commission (CPC) introduced a new pay matrix system for central government employees in India. This system offered several improvements over the previous 6th CPC structure. Let’s discuss its benefits:

  • The 7th CPC recommendations led to a significant increase in minimum pay and overall salaries for central government employees.
  • The pay matrix provides a clear path for career advancement, with both vertical movement through annual increments and horizontal movement through promotions.
  • The rationalized structure addresses issues of unequal pay scales between different levels.
  • The simplified system minimizes the risk of errors in pay calculations.
  • The pay matrix offers valuable data for analyzing trends in pay progression, retirement patterns, and promotional cycles, aiding in better financial management for the government.

7th pay commission for the pensioners

The minimum pay scale for central government employees did indeed increase substantially. It went from Rs. 7,000 per month to Rs. 18,000 per month. Following this pay rise, the minimum pension amount also witnessed a significant increase. It jumped from Rs. 3,500 per month to Rs. 9,000 per month, which is a 2.57 times increase, as you correctly pointed out.

Fitment factor in 7th pay commission

In the context of the 7th Pay Commission for Central Government employees in India, the fitment factor represents a multiplication factor used to calculate the revised pay. It essentially determines the overall increase in pay for employees transitioning from the 6th CPC pay structure to the 7th CPC pay matrix.

Here's how it works:

  • Simplified Calculation: The 7th CPC introduced a single fitment factor of 2.57. This factor is applied to the existing basic pay (sum of grade pay and pay scale) of an employee under the 6th CPC system.
  • Revised Pay Determination: By multiplying the existing basic pay by 2.57, the new basic pay under the 7th CPC structure is obtained. This represents a significant increase in the employee's overall pay.

The overview of 7th Pay matrix table for Central Government employees:

LEVEL 1 TO 5 (GRADE PAY 1800 TO 2800)

PB-1 (5200-20200)
GP 1800 1900 2000 2400 2800
Level 1 2 3 4 5
1 18000 19900 21700 25500 29200
2 18500 20500 22400 26300 30100
3 19100 21100 23100 27100 31000
4 19700 21700 23800 27900 31900
5 20300 22400 24500 28700 32900
6 20900 23100 25200 29600 33900
7 21500 23800 26000 30500 34900
8 22100 24500 26800 31400 35900
9 22800 25200 27600 32300 37000
10 23500 26000 28400 33300 38100
11 24200 26800 29300 34300 39200
12 24900 27600 30200 35300 40400
13 25600 28400 31100 36400 41600
14 26400 29300 32000 37500 42800
15 27200 30200 33000 38600 44100
16 28000 31100 34000 39800 45400
17 28800 32000 35000 41000 46800
18 29700 33000 36100 42200 48200
19 30600 34000 37200 43500 49600
20 31500 35000 38300 44800 51100
21 32400 36100 39400 46100 52600
22 33400 37200 40600 47500 54200
23 34400 38300 41800 48900 55800
24 35400 39400 43100 50400 57500
25 36500 40600 44400 51900 59200
26 37600 41800 45700 53500 61000
27 38700 43100 47100 55100 62800
28 39900 44400 48500 56800 64700
29 41100 45700 50000 58500 66600
30 42300 47100 51500 60300 68600
31 43600 48500 53000 62100 70700
32 44900 50000 54600 64000 72800
33 46200 51500 56200 65900 75000
34 47600 53000 57900 67900 77300
35 49000 54600 59600 69900 79600
36 50500 56200 61400 72000 82000
37 52000 57900 63200 74200 84500
38 53600 59600 65100 76400 87000
39 55200 61400 67100 78700 89600
40 56900 63200 69100 81100 92300

LEVEL 6 TO 9 (GRADE PAY 4200 TO 5400)

PB-2 (9300-34800)
GP 4200 4600 4800 5400
Level 6 7 8 9
1 35400 44900 47600 53100
2 36500 46200 49000 54700
3 37600 47600 50500 56300
4 38700 49000 52000 58000
5 39900 50500 53600 59700
6 41100 52000 55200 61500
7 42300 53600 56900 63300
8 43600 55200 58600 65200
9 44900 56900 60400 67200
10 46200 58600 62200 69200
11 47600 60400 64100 71300
12 49000 62200 66000 73400
13 50500 64100 68000 75600
14 52000 66000 70000 77900
15 53600 68000 72100 80200
16 55200 70000 74300 82600
17 56900 72100 76500 85100
18 58600 74300 78800 87700
19 60400 76500 81200 90300
20 62200 78800 83600 93000
21 64100 81200 86100 95800
22 66000 83600 88700 98700
23 68000 86100 91400 101700
24 70000 88700 94100 104800
25 72100 91400 96900 107900
26 74300 94100 99800 111100
27 76500 96900 102800 114400
28 78800 99800 105900 117800
29 81200 102800 109100 121300
30 83600 105900 112400 124900
31 86100 109100 115800 128600
32 88700 112400 119300 132500
33 91400 115800 122900 136500
34 94100 119300 126600 140600
35 96900 122900 130400 144800
36 99800 126600 134300 149100
37 102800 130400 138300 153600
38 105900 134300 142400 158200
39 109100 138300 146700 162900
40 112400 142400 151100 151100

LEVEL 10 TO 12 (GRADE PAY 5400 TO 7600)

PB-3 (15600-39100)
GP 5400 6600 7600
Level 10 11 12
1 56100 67700 78800
2 57800 69700 81200
3 59500 71800 83600
4 61300 74000 86100
5 63100 76200 88700
6 65000 78500 91400
7 67000 80900 94100
8 69000 83300 96900
9 71100 85800 99800
10 73200 88400 102800
11 75400 91100 105900
12 77700 93800 109100
13 80000 96600 112400
14 82400 99500 115800
15 84900 102500 119300
16 87400 105600 122900
17 90000 108800 126600
18 92700 112100 130400
19 95500 115500 134300
20 98400 119000 138300
21 101400 122600 142400
22 104400 126300 146700
23 107500 130100 151100
24 110700 134000 155600
25 114000 138000 160300
26 117400 142100 165100
27 120900 146400 170100
28 124500 150800 175200
29 128200 155300 180500
30 132000 160000 185900
31 136000 164800 191500
32 140100 169700 197200
33 144300 174800 203100
34 148600 180000 209200
35 153100 185400 -
36 157700 191000 -
37 162400 196700 -
38 167300 202600 -
39 172300 208700 -
40 177500 - -

LEVEL 13 TO 14 (GP 8700 TO 10000)

37400-67000
GP 8700 8900 10000
Level 13 13A 14
1 123100 131100 144200
2 126800 135000 148500
3 130600 139100 153000
4 134500 143300 157600
5 138500 147600 162300
6 142700 152000 167200
7 147000 156600 172200
8 151400 161300 177400
9 155900 166100 182700
10 160600 171100 188200
11 165400 176200 193800
12 170400 181500 199600
13 175500 186900 205600
14 180800 192500 211800
15 186200 198300 218200
16 191800 204200 -
17 197600 210300
18 203500 216600 -
19 209600 - -
20 215900 - -

LEVEL 15 TO 18 (NO GRADE PAY – HAG SCALES)

PB 67000-79000 75500-80000 80000 90000
Level 15 16 17 18
1 182200 205400 225000 250000
2 187700 211600 - -
3 193300 217900 - -
4 199100 224400 - -
5 205100 - - -
6 211300 - - -
7 217600 - - -
8 224100 - - -

Features of the 7th Pay Commission Pay Matrix in Central Government:-

  • The 7th CPC recommends a pay matrix with distinct levels. In contrast, the 6th CPC has recommended running pay bands with grade pay as a status determiner.
  • The whole universe of pay levels is shown in a detailed chart.
  • The 7th pay matrix helps the employees see their pay level, where they fit, and progress over their career span.
  • The minimum pay at each level is the entry pay for recruits of those levels. The various stages within a level move upwards at 3 percent per annum.
  • The 7th pay matrix offers a clear and complete view of the payment system in the Government of India without error.
  • An employee joins at a particular level and progresses within that level on a vertical range. Based on annual increments, this movement is done annually.
  • When employees receive a promotion or upgrade, progress one level ahead on the horizontal range.
  • The 7th Pay matrix has helped in resolving differential entry pay.
  • The 7th pay matrix table offers comprehensive visibility and transparency compared to the earlier system.
  • The 7th pay matrix is considered one of the most accessible administrative systems.
  • The 7th pay commission pay matrix is a powerful tool to bring financial management reforms.
  • The minimum payment for a government employee at the entry-level is Rs. 18,000. On the contrary, the maximum payment of government employees is Rs. 2.25 lakhs per month for Cabinet Secretary and Apex Scale, and for the other people working at the same level, it is Rs. 2.5 lakhs.
  • The level in the 7th pay matrix decides the status of the government employee, not the grade pay.
  • The 7th pay commission pay matrix offers full pay and allowance to employees who are hospitalized due to any sickness.
  • MSP is paid to the people who work in military service in India outside the Central Government Health Scheme (CGHS) area. The 7th pay commission recommends increasing the gratuity from the current Rs. 10 lakh to Rs. 20 lakh.
  • A health insurance scheme has been announced for central government employees. Additionally, cashless medical benefits for pensioners outside the Central Government Health Scheme (CGHS) area.

The 7th Pay Matrix delineates the salary framework for central government employees in India, featuring 18 horizontal levels and 40 vertical steps. Each horizontal level represents a distinct pay scale, while the vertical steps indicate financial progressions. To ascertain your pay level within the 7th Pay Matrix, knowledge of your basic pay and grade pay from the 6th Pay Commission is essential. Utilize the formula:

Pay Level=Grade Pay+100
For instance, if your grade pay is 2400, your pay level would be 2400+100=2500, situating you in pay level 4. Detailed pay matrix tables tailored for central government employees, defense personnel, and various categories can be consulted to determine your specific pay level and the corresponding salary range.


New Updates about the 7th CPC pay matrix

  1. The Maharashtra government approved a six percent hike in dearness allowance for the Maharashtra State Road Transport Corporation (MSRTC) employees.
  2. As per the 7th pay matrix, Central government employees will now be allotted wards in private hospitals under the Central Government Health Scheme (CGHS).
  3. Under the 7th pay matrix, the salary of government employees will also increase as the fitment factor increases to 2.57.
  4. A 4% hike in the dearness allowance is in a plan to be increased for the state government employees in Haryana as per the 7th pay commission pay matrix.
  5. Under the 7th CPC pay matrix, the Dearness allowances (DA) and Dearness relief (DR) have been hiked by 4.00% from 34% to 38% for Jammu and Kashmir government employees.
  6. The Dearness Allowance (DA) and the bonus of permanent employees of temples have been increased by 4.00% by the Tamil Nadu Government. The DA hike applies to employees of temples under the Hindu Religious and Charitable Endowments Department.
  7. Under the 7th Pay Commission, Tamil Nadu increases the DA for government employees. The Dearness Allowance (DA) for public employees, including pensioners, teachers, and family pensioners, was raised from 34% to 38%.

Looking to simplify your Income Tax Return (ITR) filing process? At Tax2win, we specialize in tax consultancy and financial planning, offering tailored solutions to explore the complexities of income tax regulations, especially those set forth by the 7th Pay Commission. Our expert team provides customized tax optimization strategies and comprehensive financial planning solutions to ensure complete compliance with regulations, giving you peace of mind. With the last date to file ITR approaching, give a try to Tax2win to simplify your tax affairs and maximize your savings. Book eCA (Online CA) now for a hassle-free ITR filing experience!


Frequently Asked Questions

Q- Who decides the pay structure of the central government employees?

The stakeholders and the 7th pay commission decide the pay structure.


Q- What are the factors incorporated into the 7th pay matrix?

Transparency in pay structure, rationalization of pay structure as per the grade, enhancement in the Modified Assured Career Progression frequency, and many more factors are incorporated in the new pay matrix.


Q- How do I know my pay matrix level?

The horizontal range of the pay matrix table helps you locate your pay level, while in the vertical range, you can identify your grade pay level.


Q- What is the basic pay in the 7th CPC pay matrix?

The basic pay level has been increased from Rs.18,000 as per the latest update.


Q- How many levels are there in the 7th pay matrix table?

There are 19 different pay levels in the 7th pay matrix table.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.