Entry Pay and Annual Increment by 7th CPC

Entry Pay

5.1.31 The Commission has received numerous representations on the issue of fixation of entry pay for direct recruits at a level higher than those promoted into the same level from below. In the existing system, the entry pay for new or direct recruits takes into consideration the weightage given to qualifying service prescribed by DoPT, whereas for those reaching the grade through promotion from lower grade, the entry pay is fixed at the minimum of the pay band plus grade pay corresponding to the new grade. The entry pay therefore varies, and is different for those entering a level directly and those getting promoted into it. There have been demands for a uniform entry pay for all.

5.1.32 In the new pay matrix, it is proposed that direct recruits start at the minimum pay corresponding to the level to which recruitment is made, which will be the first cell of each level. For example a person entering service as a direct recruit at level 3 will get a pay of 21,700, at level 8 of 47,600, at level 10 of 56,100 and so on.

5.1.33 For those who have been promoted from the previous level, the fixation of pay in the new level will depend on the pay they were already drawing in the previous level. For instance, if a person who was drawing 26,000 in level 3 gets a promotion to level 4, his pay fixation will be as shown in Table 7:

Table 7: Entry Pay
L3        L4       L5      L6        L7      L8
21700 25500 29200 35400 44900 47600
22400 26300 30100 36500 46200 49000
23100 27100 31000 37600 47600 50500
23800 27900 31900 38700 49000 52000
24500 28700 32900 39900 50500 53600
25200 29600 33900 41100 52000 55200
26000 30500 34900 42300 53600 56900
26800 31400 35900 43600 55200 58600
27600 32300 37000 44900 56900 60400
28400 33300 38100 46200 58600 62200
29300 34300 39200 47600 60400 64100
30200 35300 40400 49000 62200 66000
31100 36400 41600 50500 64100 68000
Step 1: After grant of one increment in level 3 the pay increases to 26,800 in level 3 itself.

Step 2: Locate the equal or next higher amount in level 4 which in this case will be 27,100. Hence the new pay on promotion from level 3 to level 4 will be fixed at 27,100.

5.1.34 In case of a direct recruit to level L4 the entry pay will be fixed at the start of the level L4 i.e., at 25,500.

5.1.35 To take another example, if a person drawing Basic Pay of, say, 40,400 in level L5 is promoted to L7, the steps to arriving at his pay on promotion will be to first add one increment within level L5 to arrive at 41,600, and then fix the pay at 44,900 in level L7 as 44,900 is the nearest, next higher figure to 41,600 in the column of figures for level L7.

5.1.36 Although the rationalisation has been done with utmost care to ensure minimum bunching at most levels, however if situation does arise whenever more than two stages are bunched together, one additional increment equal to 3 percent may be given for every two stages bunched, and pay fixed in the subsequent cell in the pay matrix.

5.1.37 For instance, if two persons drawing pay of 53,000 and 54,590 in the GP 10000 are to be fitted in the new pay matrix, the person drawing pay of 53,000 on multiplication by a factor of 2.57 will expect a pay corresponding to 1,36,210 and the person drawing pay of 54,590 on multiplication by a factor of 2.57 will expect a pay corresponding to 1,40,296. Revised pay of both should ideally be fixed in the first cell of level 15 in the pay of 1,44,200 but to avoid bunching the person drawing pay of 54,590 will get fixed in second cell of level 15 in the pay of 1,48,500.

Annual Increment

5.1.38 The rate of annual increment is being retained at 3 percent.

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