The 7th CPC has a new pay fixation after promotion. These new rules as well as a few exceptions are put into place to ensure that each employee gets the right pay at the time of promotion to the next grade.
Each employee must be fitted in the new pay matrix based on the proposal to multiply his/her basic pay by a factor of 2.57. The new pay matrix will hold the figure (the revised salary), in the level corresponding to the grade pay of the individual.
In case the given level does not hold the identical figure, the following higher figure nearest to it shall be the particular individual's new pay.
The following steps are used to fic the pay in the new pay matrix:
Pay fixation on promotion: If an employee is promoted from one grade to another under the revised pay structure, the fixation will take place in the following manner:
The following are the exceptions to the general rule:
(a) When promotion takes from PB 4 to HAG scale of Rs.67000 - 79000, after adding one increment, pay in the Pay Band and existing Grade Pay will be added. To the figure so arrived at a sum of Rs.2000/- will be added. The pay so fixed is subject to a minimum of Rs.67000 and a maximum of Rs.79000
(b) The promotion from the Grade of Under Secretary/equivalent to the Grade of Deputy Secretary/Equivalent. The pay of the other will be fixed by granting an amount equal to two increments. i.e., 6 % of their Basic Pay. The figure so arrived at, a sum of Rs.1000 i.e., the difference between the Grade Pay of under Secretary and Deputy Secretary (7600-6600) will be added.
It is recommended that the financial benefit availed on promotion should be a significant amount. Promotions in most departments are based on a skill test or a qualifying examination after several years of the stipulated residency period in the Feeder Cadre under the Recruitment rules.
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