Formula recommended by 7th Pay Commission

Formula recommended by 7th Pay Commission

 November 20, 2015  Maha  7th pay commission Edit Post

Multiplication Factor / Fitment Formula recommended by 7th Pay Commission

7th CPC recommended the Multiplication Factor proposed is 2.57

Fitment : The starting point for the first level of the matrix has been set at ₹18,000. This corresponds to the starting pay of ₹7,000, which is the beginning of PB-1 viz., ₹5,200 + GP 1800, which prevailed on 01.01.2006, the date of implementation of the VI CPC recommendations.

Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006. This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. It includes a factor of 2.25 on account of DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay. Accordingly, the actual raise/fitment being recommended is 14.29 percent.

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New 7th CPC pay amount Matrix Table

pc pay Illustrative Examples in Respect of Pay Fixation in the New Pay Matrix

Normal Fitment

Ms. ABC is presently drawing a Basic Pay of ₹12,560 in GP 2400. For Normal Fitment, her Basic Pay will first be multiplied by a factor of 2.57 and then rounded-off to the nearest Rupee.In this case 12560 x 2.57 = 32,279.20, which willbe rounded-off to ₹32,279. She will then be placed in the Pay Matrix in the Level corresponding to GP 2400 (Level 4 in this case)in a cell either equal to or next higher to ₹32,279.In this case, her salary will be fixed at ₹32,300

Upgraded by Seventh CPC

1. The new basic pay will be computed using the upgraded grade pay. The pay arrived will be as follows:

Basic Pay: 10160+2800=12,960.

2. Then this value will be multiplied by a factor of 2.57 and then rounded-off to the nearest Rupee. In this case 12960 x 2.57 = 33,307.20, which will be rounded-off to ₹33,307. She will then be placed in the Pay Matrix in the Level corresponding to her upgraded Grade Pay, i.e. GP 2800 (Level 5 in this case) in a cell either equal to or next higher to ₹33,307. In this case, her salary will be fixed at ₹33,900.

Promotion/MACP

Suppose, Ms. ABC, who, after having been fixed in the Pay Matrix, is drawing a Basic Pay of ₹28,700 in Level 4. She is upgraded to Level 5 (either regular promotion or through MACP).

Then her salary will be fixed in the following manner:
1. She will first be given one increment in her current Level 4 (to ₹29,600 in this case).

2. Then she will be placed in the Level 5 at a Level equal to or next higher compared to ₹29,600, which comes to ₹30,100 in this case.

Annual Increment

Suppose, Ms. ABC, who, after having been fixed in the Pay Matrix, is drawing a Basic Pay of ₹32,300 in Level 4. When she gets an annual increment on 1st of July, she will just move one stage down in the same Level. Hence, after increment, her pay will be ₹33,300