8th Pay Commission: Understanding the Previous Commission's Pay Matrix

8th Pay Commission: The recently announced 8th Pay Commission by the centre would revise the pay scales for all employees of Government of India.

Although the particulars of the formation of the 8th pay commission are still on, this is how the previous 7th pay commission introduced a new pay matrix.

The 7th pay commission replaced the earlier grade pay system of the 6th pay commission with a rationalised pay matrix so that anyone could understand all pay levels using just one chart.

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This matrix makes easy for employees to identify their level of salary and what progression their careers are expected to take over time.

There are two ranges of the pay matrix:

It has the "horizontal range" in that each level corresponds to "functional role in the hierarchy." Each level is assigned a number from 1 to 18.

Then, it has the 'vertical range' for each level, which indicates the 'pay progression' within that level. This is basically the three percent financial advancement of every level.

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The starting point of this pay matrix represents the minimum salary as designed by the Aykroyd formula.

The Commission observes that pay serves the purpose of compensating work done by the employees and motivating them to work with optimum efficiency. The purposes also include attracting talent from other industries into government services, retaining such talent to obviate expensive inductive recruitments and training efforts for replacements.

“The new pay structure has been devised in the form of a pay matrix to provide complete transparency regarding pay progression,” noted a report of the 7th CPC.

It has also been added that "the matrix was designed keeping in view the vast opportunities that have opened up outside government over the last three decades, generating greater competition for human resources and the need to attract and retain the best available talent in government services".

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