GAZETTE NOTIFICATION RELEASED BY THE GOVERNMENT ON 25.7.2016 ON THE ACCEPTANCE OF 7TH CPC RECOMMENDATIONS

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NEW DELHI,  MONDAY,  JULY  25,  2016/ SRAVANA 3, 1938.

HIGH LIGHTS 

4.(1)  The Pay Matrix, in replacement of the Pay Bands and Grade Pays as in force immediately prior to the notification of this Resolution, shall be as specified in Annexure I in respect of civilian employees. 

 (2)  With regard to fixation of pay of the employee in the new Pay Matrix as on 1  day of January, 2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31st  day of December, 2015 shall be multiplied by a factor of 2.57. The figure so arrived at is to be located in the Level corresponding to employee’s Pay Band and Grade Pay or Pay Scale in the new Pay Matrix. If a Cell identical with the figure so arrived at is available in the appropriate Level, that Cell shall be the revised pay; otherwise the next higher cell in that Level shall be the revised pay of the employee.   

 (3)  After fixation of pay in the appropriate Level as specified in sub-paragraph (2) above, the

subsequent increments in the Level shall be at the immediate next Cell in the Level.  

5. There shall be two dates for grant of increment namely, 1st  January and 1 st  July of every year, instead of existing date of 1 st  July; provided that an employee shall be entitled to only one annual increment on either one of these two dates depending on the date of appointment, promotion or grant of financial up-gradation. 

6. The Commission’s recommendations and Government’s decision thereon with regard to

revised pay structure for civilian employees of the Central Government and personnel of All India Services as specified at Annexure I and the consequent pay fixation therein as specified at

Annexure II shall be effective from the 1 st  day of January, 2016.  The arrears on this account shall be paid during the financial year 2016-2017.  

7. The recommendations on Allowances (except Dearness Allowance) will be referred to a

Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members. The Committee will submit its report within a period of four months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1 st  day of January, 2016.

8. The recommendations of the Commission relating to interest bearing Advances as well as 

interest free Advances have been accepted with the exception that interest free Advances for Medical Treatment, Travelling Allowance for family of deceased, Travelling Allowance on tour or transfer and Leave Travel Concession shall be retained.  

9. The recommendations of the Commission for increase in rates of monthly contribution

towards Central Government Employees Group Insurance Scheme (CGEGIS) for various categories of employees has not been accepted. The existing rates of monthly contribution shall continue. Department of Expenditure and Department of Financial Services will work out a customised group insurance scheme for Central Government employees.  

10. The Government has accepted the recommendations of the Commission on upgrading of

posts except for those specified at Annexure III. The recommendations on upgradation specified at Annexure III will be separately examined by Department of Personnel and Training for taking a comprehensive view in the matter.  

11. The Government has not accepted the recommendations of the Commission on downgrading of posts and normal replacement will be provided in such cases.  

12. While revising the pay of Doctors in respect of whom Non Practicing Allowance is

admissible and Railway employees in respect of whom Running Allowance is admissible, it will be ensured that the actual raise in pay at the time of initial fixation is about 14.29 percent as

recommended by the Commission.  

13. The pay of officers posted on deputation under Central Staffing Scheme will be protected and the difference in the pay will be given to them in the form of Personal Pay to be made effective from the date of notification.  

14. Recommendations not relating to pay, pension and allowances and other administrative issues specific to Departments/Cadres/Posts will be examined by the Ministries/Departments concerned as per the Allocation of Business Rules or Transaction of Business Rules. Until a decision is taken by the Government on administrative issues pertaining to (i) Non Functional Upgradation (NFU) presently admissible to the Indian Police Service/Indian Forest Service and Organised Group  ‘A’ Services, (ii) two years’ edge to Indian Administrative Service officers vis-a-vis other All India Services/Organised Group  ‘A’ Services in empanelment under Central Staffing Scheme, (iii) grant of two additional increments at Senior Time Scale, Junior Administrative Grade and Selection Grade to Indian Police Service and Indian Forest Service at par with Indian Administrative Service and Indian Foreign Service (iv) a uniform retirement age for all ranks in Central Armed Police Forces, where the Commission could not arrive at a consensus, status quo shall be maintained.  

15. A Committee of Secretaries comprising Secretaries of Departments of Personnel and

Training, Financial Services and Pension and Pensioners’ Welfare will be set up to suggest measures for streamlining the implementation of the National Pension System (NPS).  

16. Anomalies Committees will be set up by Department of Personnel and Training to examine

individual, post-specific and cadre-specific anomalies arising out of implementation of the

recommendations of the Commission. 

17. Regarding pay and related issues concerning All India Services, appropriate action will be

taken by Department of Personnel and Training to give effect to the decisions on these matters as may be applicable to them. 

18. The Government of India wishes to place on record their appreciation of the work done by

the Commission. 

                                                                           ORDER

 Ordered that this Resolution be published in the Gazette of India, Extraordinary.

 Ordered that a copy of this Resolution be communicated to the Ministries/Departments of the 

Government of India, State Governments, Administrations of Union Territories and all other

concerned. 

                                                                                                      R.K. CHATURVEDI, Jt. Secy. 

ANNEXURE I -  PAY MATRIX.

ANNEXURE II

 Statement showing the recommendations of the Seventh Central Pay Commission on Pay

relating to Civilian employees in Group ‘A’, ‘B’ and ‘C’ and personnel of All India Services and

Government’s decisions thereon.   

I. Pay Fixation in revised Pay Structure:

Sl. No.    Recommendation of the Seventh Central Pay                            Decision of the Government 

               Commission

1.           Minimum pay in government with effect from                           Accepted  

              01.01.2016 at Rs. 18000 per month (Para 4.2.13

              of the Report) 

2.           Pay Matrix comprising two dimensions having                          Accepted      

              horizontal range in which each level corresponds

              to a “functional role in the hierarchy” with

              number assigned 1, 2, 3 and so on till 18 and

             “vertical range” denoting “pay progression”.

             These indicate the steps of annual financial

             progression (Para 5.1.21 of the Report) 

3.         On recruitment, an employee joins at a particular                        Accepted  

             level and progresses within the level as per the

             vertical range. The movement is usually on an

             annual basis, based on annual increments till the

             time of their next promotion. (Para 5.1.22 of the

             Report) 

4.          The fitment factor of 2.57 to be applied                                       Accepted  

             uniformly for all employees. (Para 5.1.27 of the

             Report) 

II. Annual Increments:

Sl.No.   Recommendation of the Seventh Central Pay                     Decision of the Government  

             Commission

1.        The manner of drawal of annual increment to be                            Accepted 

           as laid down in Para 5.1.53 of the Report. 

III. Modified Assured Career Progression Scheme:

Sl. No. Recommendation of the Seventh Central Pay                      Decision of the Government   

            Commission

1. MACP will continue to be administered at 10, 20                                  Accepted  

and 30 years as before. In the new Pay Matrix,

the employee will move to immediate next Level

in hierarchy. Fixation of pay will follow the same

principle as that for a regular promotion in the

Pay Matrix. MACPS will continue to be

applicable to all employees up to Higher

Administrative Grade (HAG) level except

members of Organised Group ‘A’ Services. (Para

5.1.44 of the Report) 

2. Benchmark for performance appraisal for                                            Accepted       

promotion and financial ungrdation under

MACPS to be enhanced from “Good” to “Very

Good”. (Para 5.1.45 of the Report) 

3. Withholding of annual increments in the case of                                  Accepted 

those employees who are not able to meet the

benchmark either for MACP or a regular

promotion within the first 20 years of their

service. (Para 5.1.46 of the Report) 

V. Dearness Allowance: 

Sl. No.      Recommendation of the Seventh Central                        Decision of the Government
                Pay Commission

1. Existing formula and methodology for                                 
calculating Dearness Allowance to  continue
(Para 8.17.37 of the Report)                                                 Accepted. The reference base for
                                                                                              calculation of Dearness Allowance after
                                                                                              coming into force of the revised Pay
                                                                                              structure shall undergo change
                                                                                              accordingly and will be linked to the
                                                                                              average index as on 01.01.2016.