Pay for Central Government Employees – Rules and Guidelines

How Pay is determined for Central Government Employees ?

Since 1st January 2016, basic pay of a central government employees including railway employees and civilian defence employees is governed by Pay Matrix table formulated by 7th Pay commission which was later approved by Government. Each cell in the pay matrix contains a basic pay. Each column of the pay matrix belongs one post / cadre in the department. The first cell of each column contains the entry pay of each post / cadre. The downward traversal of the pay matrix in a column gives incremented pay (3% more than column at the top). For providing annual increment in the basic pay of the employee, the basic pay in the next row in the same column is taken as incremented pay of an employee. At the time of promotion or grant of financial upgradation, the pay of the employee concerned will be fixed in the next column after providing increment for promotion / MACP.

Apart from Basic Pay Central Government Employees are also entitled to various allowances depending upon the factors such as nature of work, place of posting etc. Allowances are granted either as a percentage of basic pay (House Rent Allowance, Dearness allowance etc.) or as a fixed amount (Ex. Transport Allowance, Children Education Allowance etc.)

This page contains articles on following topics that covers important rules and guidelines on basic pay of a Central Government Employees and tools to determine pay on MACP / Promotion.

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