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All About 7th Pay Matrix

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Inflation! You heard it right! As a result of inflation in the economy, the price of the products and services increased, creating a much-needed gap to be filled. The pay commissions had been set up to make adequate adjustments in the salary structure to live up with the economy. During the 7th Pay Commission’s meeting, several demands were discussed with stakeholders, including common wages for entry-level employees, a rationalisation of the current grade pay structure, and a transparent pay structure.

Thus, innovating in its design, the 7th pay commission has produced a basic salary table for all the Central Government employees. The ‘Pay Matrix Table’ shows the basic salary (including the initial pay scale) and promotion and increment calculations for all classifications (Group A, Group B, Group C) of central government forces. This chart is the crowning achievement of the 7th Central Pay Commission.

In its report, the Central Pay Commission recommended three types of pay matrix tables: one for the civilian employees, one for the armed forces, and one for the MNS officers. Railway staff and postal workers are included in the civilian employee group.

Employees can find out their current pay level, where their salary belongs, the future path of pay progression, the career ladder, among others, with the pay matrix. It allows government employees to find their current pay level and assess their present status and potential for growth during their careers.

Did you know?

Despite appearing to be a simple number table, it contains a lot of calculations that benefit about one crore government employees and officers.

Further, the calculation spreads over 540 cells if you were about to check the pay scale matrix/ pay slab for your next 40 years!

What do you Mean by Pay Commission?

The Pay Commission is an administrative system or mechanism appointed by the government of India to examine, review and recommend changes to salaries and pay structure that is desirable and feasible.

As part of its analysis, every pay commission examines various factors, including the country’s economy. Seven pay commissions have been set up since India’s Independence, the latest one being the 7th.

The 7th Pay Matrix Table and How it is Used

On 28 February 2014, the UPA Government established the seventh pay commission under the chairmanship of Justice Ashok Kumar Mathur. Other members are Shri Vivek Rane, Dr Rathin Roy, and Smt Meena Agarwal.

A report by the 7th Pay Commission was submitted on 19 November 2015, and its recommendations came into effect on 1 January 2016.

The 7th pay matrix table is pointed out as below:

  • Each level is positioned equidistantly.
  • The various stages within a level move upwards at a 3 per cent rate each year.
  • There are two dimensions to the pay matrix: a “horizontal range”, which corresponds to the functional roles as assigned by numbers 1 through 18, and a “vertical range”, which indicates the rate of pay progression within the level.
  • Typically, an employee is recruited at a particular level and progresses within the level according to the vertical range. Promotions are typically offered on an annual basis, based on annual increments.

Also Read: Salary Calculator 2022-23 – Take Home Salary Calculator India

How to Calculate Salary?

As of 31st December 2015, the existing pay (Pay in Pay Band plus Academic Grade Pay) for an employee in the pre-revised structure shall be multiplied by a factor of 2.57 to fix the employee’s pay in the Pay Matrix as of 1st January 2016.

Accordingly, the figure arrived at will be located in the Academic Level corresponding to the employee’s pay band and academic grade pay in the new Pay Matrix. If a Cell with the same figure in the appropriate Academic Level can be found, it will be the revised pay; Unless otherwise indicated, the employee’s revised pay shall be the next higher cell of that Academic Level. If the figure arrived at in this manner is less than the first cell of that Academic Level, then the employee’s pay shall be that first cell.

The current basic pay is multiplied by 2.57 to arrive at the final salary amount. The relevant benefits like Transport Allowance (TA), House Rent Allowance (HRA), Medical Allowance, etc., are added.

Let us see how pay scales are adjusted from the 6th CPC to the 7th CPC using the 7th Pay Commission’s recommendation: An employee’s basic pay is ₹20,000 as of January 1, 2016. Multiply that amount by a Fitment Factor of 2.57. 20000*2.57=51,400

The result is ₹51,400, plus TA, HRA, and medical allowances, as applicable, and under the revised rates approved by the government. 

The following is the pay matrix table for Central Government employees as notification dated 16.05.2017.

In the following example, we calculate the minimum monthly salary for each CG pay matrix level from 1 to 5.

  • Pay Level 1: Basic Pay ₹18,000 = ₹25,992 (Basic pay 28% DA 9% HRA TA)
  • Pay Level 2: Basic Pay ₹19,900 = ₹28,424 (Basic pay 28% DA 9% HRA TA)
  • Pay Level 3: Basic Pay ₹21,700 = ₹32,033 (Basic pay 28% DA 9% HRA TA)
  • Pay Level 4: Basic Pay ₹25,500 = ₹37,239 (Basic pay 28% DA 9% HRA TA)
  • Pay Level 5: Basic Pay ₹29,200 = ₹42,308 (Basic pay 28% DA  9% HRA TA)

Grade Pay 1800-2800 – Level 1–Level 5

(Amount in ₹)


Level 1

Level 2

Level 3

Level 4

Level 5

Grade Pay






Minimum Pay






Maximum Pay






Grade Pay 4200-5400 – Level 6–Level 9

(Amount in ₹)


Level 6

Level 7

Level 8

Level 9

Grade Pay





Minimum Pay





Maximum Pay





Grade Pay 5400-7600 – Level 10–Level 12

(Amount in ₹)


Level 10

Level 11

Level 12

Grade Pay




Minimum Pay




Maximum Pay




Grade Pay 8700-10000 – Level 13 – Level 14

(Amount in ₹)


Level 13

Level 13A

Level 14

Grade Pay




Minimum Pay




Maximum Pay




Highlights of 7th Pay Commission

  • Minimum Pay will begin at ₹18,000.00
  • For Apex positions, the pay shall begin at higher levels
  • A fitment factor of 2.57 will be applied uniformly throughout.
  • Annual increment shall be effective at 3%
  • Several structures were subsumed to start with a new structure.

Also Read: How To Save Income Tax on Income From Salary For Individuals

State Government Pay Revision

Consequent to revision of pay scales of Central Government employees, the State Government formed a fitment committee in the finance division to revise the pay scale of the State Government employees, to suggest modalities, and procedure of fitment of the existing grades in the revised scales of pay, to examine anomalies in the existing pay scales and to review the scale of other allowances and relatable pay. 


The 7th Pay Commission introduced by the UPA regime is so important because it impacts the earnings of more than a crore employees. Additionally, it impacts the country’s fiscal deficit and gross domestic product. Hopefully, people everywhere will accept these changes.


Introduction of 7th pay commission table

7th Central Pay Commission

Date of Implementation and amendment

01.01.2016 & 16.05.2017 (Attached Above)


Central Government Employees


Fixation of Pay


Classification of Post of employee







Fitment Factor



State Government adaptation

Reason for search

Main Element: Basic Pay

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