Seventh Pay Commission Calculator: Pay Fixation with Pay Matrix

/ M. Pattabiraman / 1 Comment

Published: November 20, 2015 at 11:21 am

Photo of M Pattabiraman, founder, editor and primary author of freefincal.com By M. Pattabiraman   

Here is a seventh pay commission calculator based on the pay commission report which allows you to determine your new salary based on the pay matrix. Do share this sheet with your colleagues or friends who work for central or state governments.

For pensioners: Seventh Pay Commission Revised Pension Calculation

The six pay commission introduced the concept of pay grades and did away with the concept of a pay scale. The seventh pay commission wants to get rid of the pay grade and use a simply pay matrix to fix pay.

Here is an extract from the report. The full report can be downloaded from here: http://finmin.nic.in/7cpc/7cpc_report_eng.pdf.

The Commission believes that any new entrant to a service would wish to be able to make a reasonable and informed assessment of how his/her career path would traverse and how the emoluments will progress alongside. The new pay structure has been devised in the form of a pay matrix to provide complete transparency regarding pay progression.

The Commission has designed the new pay matrix keeping in view the vast opportunities that have opened up outside government over the last three decades, generating greater competition for human resources and the need to attract and retain the best available talent in government services. The nomenclature being used in the new pay matrix assigns levels in place of erstwhile grade pay and Table 3 below brings out the new dispensation for various grades pay pertaining to Civil, Defence and MNS (military nursing service). Page 71.

It wishes to assign a level for each existing grade pay, as shown below.

Seventh Pay Commission Pay Fixation

seventh-pay-commission-calculator

 

To determine the new salary when the 7th pay commission comes into effect, the following steps need to be adopted. These steps are automated with the excel sheet attached.

  1. Add current pay + grade pay*. This sum is your current basic 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.
  3. Determine the level corresponding to your grade pay*
  4. In the column under your level find the number closest to S. This would be your new salary.
  5. (*) If the grade pay has been  recommended an increase in the report, use the new grade pay above instead of your old grade pay.
  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

seventh-pay-commission-pay-matrix-for civilians

Download the  Seventh Pay Commission Calculator

Thanks to Mahesh Jadhav for pointing out an issue with grade pay 5400. Do let me know if any modifications are necessary.

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About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com
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