Jul 312016

Difference between Pay Matrix And Grade Pay System

In order to review pay structure of employees of central government, government of India intermittently formed Pay Commission for providing suggestions and recommendation about alerting pay structures of government employees in fixed time-period gap. Recently, 7th Pay commission formed and its recommendations submitted to government and it is expected to be implemented soon.

Difference between Pay Matrix And Grade Pay system

Pay commission Administrative system which determine the salaries
Constitution of First Pay commission Held on 1946
Numbers of members in 7th Pay Commission 4 Person

Grade Pay System was introduced by 6th pay commission and it is removed in 7th pay commission and up-graded to new Pay Matrix System by the committee members. If you analyze the details provided below for grade pay system and features of pay matrix, you can understand the significant differences between them.

Main drawbacks of Grade Pay System

  • Central Government employees will be benefited if government removes Grade pay System as per the recommendation of 7th Pay Commission.
  • It is really intolerable that a promotion come with an increment of just Rs.100.
  • Senior promotes obtaining less pay than junior direct recruits.

Normally, pay commission committee will look into the reports and suggestions of previous pay commission and process their work to form new pay commission. However, there’s no any such rule to be follow for referring previous commission reports.

Unique features of Pay Matrix

A new pay fixation table called as Pay Matrix was introduced by 7th Pay Commission. The special features and benefits of the new system are listed.

  • The new pay matrix is expected to be simple to manage and the problems of disparity entry pay have been determined.
  • The issues of existing pay structure which have been raised by numerous stakeholders are tackled by including of pay bands and grade pay into one composite level.
  • The pay matrix acts as a powerful tool to get in financial administration changes. It provides vital data on number of personnel populating each level, promotional trends of various cadres and so on.
  • It offers a complete and unmistakable view of the pay system in the Government of India.
  • The employees can pass through both horizontally across levels by way of MACP and regular promotion and vertically within a level in the new pay matrix by way of annual progression. This will allow the employees to visualize their career path across levels and extent of service.

Recommendations are for all types of officers and employees working in Central Government services. Previously, Grade Pay & Running Pay Band system was initiated by 6th Pay Commission. The 7th CPC is supposed to grow by transferring to the new Matrix system.

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