# Government Accepts Seventh Pay Commission Recommendations

The finance ministry releases a notification today that government has accepted the minimum pay, fitment Factor, index of rationalisation, pay matrices and other recommendations of the seventh pay commission*

* Some features of the defence pay matrix have not been accepted (page 21 here). A full list of all recommendations also can be found there.

The revised pay can be computed with Seventh Pay Commission Calculator: Pay Fixation with Pay Matrix

Pensioners can use: Seventh Pay Commission Revised Pension Calculation

Here is an illustration released by the finance ministry

A person drawing a current basic of Rs.12,560 will now draw Rs.  32,300

## Steps to determine new pay

2. Multiply above sum by 2.57 and call this S. The report says use 2.57 for all cadres. However, in the pay matrix (see below) the multipier varies with grade pay. The calculator allows you to do both.
4. In the column under your level find the number closest to S. This would be your new salary.
6. Transport allowance and HRA has to be added to this. This is done as per the recommendations of the report.

## Seventh Pay Commission Pay Matrix

The pay scale fitment is different for medical officers who get  non-practicing Allowance (NPA) and for those who got promoted between 1st Jan 2016 and when the actual pay revision is implemented. The rules for these employees can be found in the Revised Pay Rules 2016

Want to conduct a sales-free "basics of money management" session in your office?
I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. You need to only cover my travel fare for the session.

## You Can Be Rich Too with Goal-Based Investing

My first book is now available at a 35% discount for Rs. 258. It comes with nine online calculators. Get it now.  The Kindle edition is only Rs. 199.

## Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want

My second book is now only Rs 199 (Kindle Rs. 99) Get it or gift it to a young earner

## The ultimate guide to travel by Pranav Surya

This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step.  Get the pdf for ₹199 (instant download)

## Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

Freefincal has open-source, comprehensive Excel spreadsheets, tools, analysis and unbiased, conflict of interest-free commentary on different aspects of personal finance and investing. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. We do not accept sponsored posts, links or guest posts request from content writers and agencies.

## Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.

## 14 thoughts on “Government Accepts Seventh Pay Commission Recommendations”

1. Shweta says:

Awesome as usual!

2. Avijit Paul says:

This is very erroneous notification from finance ministry. Firstly the fitment factor is 2.67 for level 10 and 2.77 for level 15 onwards as per pay matrix but they are writing 2.57 for all. They should at least updated the pay matrix accordlingly for 2.57. For our profession the grade pay varies 6000,7000 ..which is also missing in pay matrix.

1. freefincal says:

Sorry, you are wrong. The commission recommended a uniform fitment factor for all. See page 70 (on pdf file) of the report.

3. gunda says:

“..A person drawing a current basic of Rs.12,560 will now draw Rs. 32,300…” Exorbitant hike! to say the least. Everyone else gets paid based on performance (of individual and of institution)

1. freefincal says:

If you say so.

4. Avijit Paul says:

Thanks for pointing out my mistake. I was confused with indexing factor for fixing the entry pay of each grade pay, with the fitment factor. Still the entry pays of grade pay of 6000, 7000, 8000 applicable for professor are missing. Do you have any idea when ministry will notify.

5. ARVIND RATHNASENGHA says:

One should not compare the new basic pay with the old, but with the old basic pay+ Dearness Allowance which has reached 125%! In other words actually the current salary is more than double the basic pay. In the example quoted by Shri Gunda, the current pay of the person is effectively not 12,560 but 12560+15700=28260. The real increase is therefore 4040 rupees.
Perhaps the hike will not appear monstrous then!

1. freefincal says:

Yes Sep salary should reflect the change.

6. shobhagowri says:

The changed pay will be from S0eptember received in October? For pensioners too?

1. freefincal says:

Many govt employees have already got the new pay and arrears.

7. shobhagowri says:

Thank you .