7th CPC Pay Fixation

The 7th CPC has a new pay fixation after promotion. These new rules as well as a few exceptions are put into place to ensure that each employee gets the right pay at the time of promotion to the next grade.

Each employee must be fitted in the new pay matrix based on the proposal to multiply his/her basic pay by a factor of 2.57. The new pay matrix will hold the figure (the revised salary), in the level corresponding to the grade pay of the individual. In case the given level does not hold the identical figure, the following higher figure nearest to it shall be the particular individual’s new pay.

The following steps are used to fic the pay in the new pay matrix:

  1. The basic pay drawn by an individual must be identified. The basic pay in this case is the pay in the pay band in addition to the grade pay. The figure so arrived at can be called ‘A’.
  2. ‘A’ must be multiplied by 2.57 and must be rounded off to the closest rupee. The figure so arrived at can be called ‘B’.
  3. ‘B’ will be the individual’s new pay in the pay matrix. If the value of ‘B’ is lower than the starting pay of the level, the pay will be the same as the starting pay of the particular level.

Pay Fixation after Promotion in 7th Pay Commission

Pay fixation on promotion: If an employee is promoted from one grade to another under the revised pay structure, the fixation will take place in the following manner:

  1. A single increment will be equal to 3% of the amount of the pay in the pay band and the grade pay will be calculated and rounded off to the multiple of 10. The amount so generated shall be added to the current pay in the pay band.
  2. But, the 7th Pay Commission so fixed should not be less than the minimum of the pay band to which the employee is promoted.
  3. The employee who is promoted will receive the grade pay designated to the cadre to which he/she is promoted.


The following are the exceptions to the general rule:

(a) When promotion takes from PB 4 to HAG scale of Rs.67000 – 79000, after adding one increment, pay in the Pay Band and existing Grade Pay will be added. To the figure so arrived at a sum of Rs.2000/- will be added. The pay so fixed is subject to a minimum of Rs.67000 and a maximum of Rs.79000

(b) The promotion from the Grade of Under Secretary/equivalent to the Grade of Deputy Secretary/Equivalent. The pay of the other will be fixed by granting an amount equal to two increments. i.e., 6 % of their Basic Pay. The figure so arrived at, a sum of Rs.1000 i.e., the difference between the Grade Pay of under Secretary and Deputy Secretary (7600-6600) will be added.

It is recommended that the financial benefit availed on promotion should be a significant amount. Promotions in most departments are based on a skill test or a qualifying examination after several years of the stipulated residency period in the Feeder Cadre under the Recruitment rules.

News About CPC Pay Fixation

  • Draft guidelines issued by the Finance Ministry for retired Central Government employees

    Draft guidelines have been by the Finance Ministry to regulate salaries of Central Government employees who are retired and are appointed as consultants with the government. Under the guidelines that have been issued, the salary of retired Central Government employees who are under contract basis will be on a uniform basis. A proposal has been put forward that the fixed monthly amount that has been received will have arrived after the deduction of the basic pension. Individuals who have been appointed under nomination, no DA and increment will be provided during the duration of the contract. In case the retired employee has been appointed on an open market basis, then the regulation of the remuneration will be based on the contract’s terms and conditions and the pension need not be deducted.

  • Government issues increment rules for employees

    The central government has now issued new rules for the regulation of advance increments to a part of the central government employees. An Office Memorandum of the Department of Personnel and Training (DoPT) had said that the advance increments will be granted to the stenographers of Subordinate Offices after they qualify the speed test in shorthand at 100/120 w.p.m.

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