The pay matrix, which was recommended by the 7th Pay Commission, has changed the way salaries are paid to central government employees. So, as the 8th Pay Commission has begun its work, many people are looking back at how the 7th Pay Commission made the salary calculation so simple.
The seventh Pay Commission introduced the third time paying matrix that replaced the grade pay system to make the salary structure more systematic and easier to understand. It was a very useful tool that enabled employees to determine their pay level and career path over the years.
The pay matrix consists of two dimensions:
- Horizontal range: This is the different pay levels identified and denoted by numbers 1 to 18 depending on the function in government service.
- Vertical range: This shows the rates of salary advancement, and the annual increase is 3% for employees.
The starting pay in the matrix is set by the Aykroyd formula, which uses living costs as a reference to set a fair wage. The Seventh Central Pay Commission also pointed out that the pay matrix has a number of objectives to achieve:
- To pay employees a fair compensation for the work they do.
- To induce employees to work productively.
- Attracting and retaining the staff of the government.
The 7th CPC reported that the pay matrix was put in place to bring the government salaries on par with the private sector. Thus, as more people are vying for the positions of skilled professionals, the pay matrix ensures that government jobs are as attractive as they are affordable.
Thus, the employees are waiting for the developments of the 8th Pay Commission and how the pay matrix can be improved further.
