7th Pay Commission Pay Fixation on Promotion or MACP
Pay Fixation is the most important calculation method for Government employees in India! The methodology of calculation for Pay Fixation in many situations like Initial Pay Fixation, Pay Commission Pay Fixation, Promotion Pay Fixation and MACP Pay Fixation.
Pay Fixation Rules in 7th Pay Commission
‘Fitment Factor‘ is one of the most important elements for revising the basic salary from one pay commission to another pay commission. Every pay commission recommends the Fitment Benefit in various methods. The 6th pay commission had recommended the ratio of Fitment Benefit was a single-window format for Central Government employees. 1.86 was recommended the common Fitment Factor to revise the basic salary from 5th to 6th Pay Commission. And the 7th Pay Commission also followed the same methodology and revised the ratio to 2.57.
7th Pay Commission Pay Fixation Formula
Method of Fixation of Pay as per 7th CPC
Point 1: Multiple current basic pays (as of 31.12.2015) with fitment factor of 2.57 and rounded off to next rupee
Point 2: Find the Pay Matrix Level in accordance with the Grad Pay
Point 3: Match the value of Point 1 with the eligible Pay Matrix Level pay hierarchy (equal or higher value)
Point 4: The selected value is the revised pay as on 1.1.2016
Pay fixation rules have been changed after the implementation of the 7th pay commission. The new rules adopted to all categories of Central Government employees will be regulated as per Central Civil Services (Revised Pay) Rules 2016.
Pay Fixation Example
An employee ‘T’ in GP 4200, drawing pay of Rs. 20,000 in PB-2. The Basic Pay is Rs. 24,200 (20,000+4200). After multiplying by 2.57, the amount fetched viz., Rs. 62,194 would have been located in Level 6 and T’s pay would have been fixed in Level 6 at Rs. 62,200.
Fitment Factor for CG Employees
The uniform 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 per cent at the time of implementation of the new pay. [Para 5.1.27 in 7th CPC Report]
Dopt Orders on Pay Fixation
The Department of Personnel and Training issued orders and circulars from time to time in various situations regarding the pay fixation on promotion or MACP to Central Govt employees. Click to view all Dopt orders circulars
Fitment Factor for Defence Personnel
The starting point of a Sepoy (and equivalent), the entry-level personnel in the defence forces, has been fixed in the Defence Pay Matrix at Rs.21,700. The fitment in the new matrix is essentially multiple factors of 2.57. This multiple is the ratio of the new minimum pay arrived at by the Commission (Rs.18,000) and the existing minimum pay (Rs.7,000). The fitment factor is being applied uniformly to all employees. An identical fitment of 2.57 has also been applied to the existing rates of Military Service Pay (MSP), applicable to Defence forces personnel only [Para 5.2.7 in 7th CPC Report]
Staff Side Suggestion on Pay Fixation
Fixation of Pay on promotion: In the case of Promotion from one grade to another in the revised pay structure, the fixation is presently done as under:-
(a) One increment equal to 3% of the sum of the Pay in Pay Band and Grade Pay will be computed and rounded off to the multiple of 10. This will be added to the existing Pay in the Pay Band.
(b) However, the Pay so fixed must not be less than the minimum of the Pay Band to which he is promoted.
Pay fixation on Promotion Format Rules
7th CPC Pay Fixation on Promotion or MACP Calculator
The 7th Pay Commission simplified the calculation for arriving at the revised pay through a Pay Matrix. Let us assume you are presently drawing Grade Pay Rs. 4200 and Pay of Rs. 12110 in the Band Pay-2 as of 01.01.2016.
7th CPC Pay Fixation Step 1
Your 6th CPC Basic Pay ( Grade Pay + Band Pay) is = 4200+12110= Rs. 16310
7th CPC Pay Fixation Step 2
Multiply your 6th CPC Basic Pay with 7th CPC’s Fitment Formula i.e. 2.57:- 16310 x 2.57 = Rs.41916.70 ( Paisa to be rounded off to the nearest Rupee) = Rs.41917
7th CPC Pay Fixation Step 3
Match above figure ( 41917) with Matrix Table ( Given Below) figures assigned in Grade Pay column Rs.4200. There is no matching figure we arrived at above in this matrix, so the closest higher figure assigned in the Grade Pay column can be chosen i.e Rs. 42300. So, Rs 42300 is your New 7th CPC Basic Pay.
7th CPC Pay Fixation Step 4 (HRA)
HRA has been revised as 24%, 16% and 8% for the existing 30%, 20% and 10% respectively. If you are in the 30% HRA Bracket at present, your HRA in the 7th CPC is 24%. Therefore, your HRA in 7th CPC = Rs. 42300 x 24/100 = Rs.10152.
7th CPC Pay Fixation Step 5 (TPTA)
7th CPC recommends Transport Allowance for three Categories of Employees for Two Types of Places. If you are living in A1 and A classified cities (See the List of 19 cities classified as A1 and A cities) you will be entitled to get higher TPTA rates. Since your Grade Pay is 4200 you fall in the second category i.e. Grade Pay 2000 to 4800 and your TPTA is Rs. 3600+DA
7th CPC Pay Fixation Step 6 (DA)
DA will be Zero as of 1.1.2016. So there is no need to calculate the DA to calculate gross pay as of 1.1.2016. Add all the figures :- Your revised 7th CPC Gross pay as on 1.1.2016 = Basic Pay + HRA + TPTA + DA = 42300+10152+3600 = Rs.56052