8th Pay Commission Unveiled: How Pay Matrix Replaced Grade Pay Over Time

8th Pay Commission Pay Matrix : Modi government recently approved the formation of the 8th Pay Commission. Now about 1 crore central employees and pensioners are waiting to know about the salary they will get under it. Like the last two pay commissions, it is being speculated that the new pay commission may also suggest a revised pay structure. There have been many changes in the salary structure of central government employees earlier as well. Before the announcement of the 8th Pay Commission, the 7th Pay Commission had recommended a well-thought-out salary structure, which included levels in the new pay matrix instead of grade pay.

Earlier, the 6th Pay Commission had recommended running the pay band along with grade pay as a status determinant, while the pay scales were already in place. While the formation of the 8th Pay Commission is still going on. Before this, let's take a look at the changes made in the salary structure of central government employees in the 7th Pay Commission.

8th Pay Commission: Pay Matrix replaced Grade Pay
The 7th Pay Commission has replaced the grade pay of the 6th Pay Commission with a rational pay matrix. Which can help you understand all the pay levels in one chart. In its report, the 7th CPC mentioned that the levels in the pay matrix display a logical pay progression. With the help of the pay matrix, employees can see their pay level, where they fit in and what is their potential for progress in their career.

The new pay matrix had levels assigned to various grade pays as recommended by the 6th Pay Commission. The pay matrix has two dimensions. Firstly, it has a horizontal range in which each level corresponds to a hierarchy. Each level is assigned a number, from 1, 2, and 3 and so on up to 18.

Second, it has a vertical range for each level indicating the 'pay progression' within that level. These indicate the steps of annual financial progression of 3 percent within each level. The starting point of the pay matrix is ​​the minimum pay based on the Ackroyd formula.

8th Pay Commission: 7th CPC Pay Matrix
The 7th CPC in its report had stated that the Pay Matrix addressed the important issue of adequacy of compensation structure. The Commission believes that the purpose of pay is to compensate employees for the work they do, to motivate them to perform well. The objectives also include attracting and retaining talent in government service, thus avoiding costly recruitment and training of replacements. The new pay structure in the form of Pay Matrix has been designed to provide complete transparency regarding pay increases.