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Calculation for Annual Increment in 7th Pay Commission

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Calculation for Annual Increment in 7th Pay Commission

7th Pay Commission recommends 3% of the basic Pay for Annual Increment

Annual Increment in Seventh Pay commission remains same. 3% of Basic Pay has been recommended as Annual Increment. But calculation of Annual Increment differs in a way that Pay matrix has been evolved.

In the pre revised Pay, the exact 3 % of the Pay band + Grade Pay would be added in the Pay band on account of Annual Increment on 1st July  of every year.

But here in 7th pay commission there is a possibility to get little more or Less than the three percent of Basic Pay. Because here our Basic Pay has to be moved one stage higher in the same Level. In Pay Matrix , each cell in that particular level is calculated such a way that it is 3% higher than the next cell. Since the figure rounded off to nearest hundred, exact three percent increase cannot be expected.

7th Pay Commission gave an Illustrative Example in Respect of Granting Annual Increment.

Suppose, Ms. ABC, who, after having been fixed in the Pay Matrix, is drawing a Basic Pay of Rs.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 Rs.33,300.

Source: www.gservants.com
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  1. In such case, no need of 3% increment. Directly he can get fixed to the next stage, every Jul. This is not correct.

  2. Notional increment for calculation of pensionary benefits to the employees who retired on 30 June after completion one year service be granted to avid recurring financial to the all employees retired after 2006.

  3. If one employee desires to switch over revised pay structure w.e.f. 01-07-2016 after getting one increment in existing pay structure, what will be the DNI (date fof next increment) in that case ?

  4. In MACP cases how to fixation of pay suppose Mr. A is 1st MACP on 27 November 2017

  5. sir
    i was on GP 2800 in Jan 2016 and in April 2016 I got promotion to GP 4200. After this I clear the SAS exam due to which I got promotion to GP 4800 in 18th July 2016. will I get two increment or not. How will my salary be fixed?

  6. 3% over previous pay as increment is calculated and rounded off to the nearest 100 rs. ls readily given in the MATRIX.


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