7th compensation commission: what is the compensation matrix? Here’s how it will benefit you | Personal finance news

New Delhi: The compensation matrix plays an important role in central staff compensation. Previously, the status of employees was determined by their salary, but now it is determined by the compensation matrix. The salary increase for employees (7th CPC Salary scale 3) is calculated on this basis.

It is essential that you understand what the compensation matrix is ​​and how it will affect employee salaries. Also think about how it will help government staff. Level 3 of the compensation matrix below the 7th salary determines the fundamental compensation structure. Currently, the basic salary structure ranges from Rs 21,700 to Rs 69,100, with 40 increments between them.

Let’s take a look at an example. In New Delhi, a person works as a postman in the postal service and is classified at level 3 in the pay matrix. His basic income is Rs 21,700, so please tell us what is the total remuneration of this employee.

– Level & GP: Level-3 (GP-2000)

– Location: Delhi

– Base salary: Rs. 21,700

– High Cost Allowance (DA): Rs. 6,727 (31% of base salary)

– House Rent Allowance (HRA): Rs. 5,859 (27% / City X)

– Travel allowance: Rs. 4,716 (Tier 3/A1 city)

– Gross salary: Rs 39,002

Following the adoption of the Seventh Pay Commission (7th Pay Commission), the status of the central employee is now determined by the remuneration matrix rather than by the level of remuneration. Employees can now simply determine their current compensation level and learn about potential future salary increases. With this, you will know from the start of your work how many benefits the employee will receive in the future.

There is a table that is used to calculate the salary. It should be noted that separate pay matrices have been established for Civilian Personnel, Defense Force and Military Nursing Service (MNS), upon which their salaries are calculated. This structure has been developed in such a way that each employee benefits from it, according to the recommendations.

According to the recommendations of the 7th Salaries Commission, the minimum salary for junior government employees has now been increased from Rs 7,000 to Rs 18,000. That is to say, the salary will now be determined using the fundamental structure of 18 $000. Simultaneously, Class I civil servants would be reinstated with a starting salary of Rs 56,100. That is to say, government personnel, on the whole, enjoy the ability to calculate their salaries and allowances.

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