Evolution of Salary Structures: From 5th CPC to 6th CPC & 6th CPC to 7th CPC
The Central Pay Commission (CPC) in India plays a crucial role in determining the salary structure for government employees. Over the years, the implementation of the 5th, 6th, and 7th CPC has significantly impacted the financial well-being of government employees. Let’s explore the changes in salaries from the 5th CPC to the 6th CPC and from the 6th CPC to the 7th CPC.
Transition from 5th CPC to 6th CPC
Let us see the following example to find out the change in salary from 5th CPC to 6th CPC. Under the 5th CPC, the basic pay (BP) of an employee was ₹6375 in the pay scale 5500-9000. Additionally, they received Dearness Pay (DP) of ₹3188 and Dearness Allowance (DA) calculated at 24% of BP and DP, amounting to ₹2295. The total salary for an employee under the 5th CPC was ₹11858.
With the implementation of the 6th CPC, there was a significant increase in the basic pay. The new BP was set at ₹16060, and the components of DP and DA were revised. The DA component was reset, and the total salary increased to ₹16060. The overall increase in salary from the 5th CPC to the 6th CPC was 35.44%, which was a substantial hike that aimed to address inflation and cost of living adjustments.
| Component | 5th CPC | 6th CPC |
|---|---|---|
| Basic Pay (BP) | ₹6375 | ₹11860 |
| Dearness Pay/Grade Pay | ₹3188 (DP) | ₹4200 (GP) |
| Dearness Allowance (DA) | ₹2295 (24% of BP+DP) | ₹0 |
| Total Salary | ₹11858 | ₹16060 |
| Increase % (BP+DA) | – | 35.44% |
Transition from 6th CPC to 7th CPC
The 6th CPC laid a strong foundation, but it was the 7th CPC that brought about further adjustments to keep up with the evolving economic landscape. Under the 6th CPC, the basic pay of the above employee was ₹22740, and the DA calculated at 125%, amounting to ₹28425. The total salary for the employee under the 6th CPC was ₹51165.
With the implementation of the 7th CPC, the basic pay was significantly increased to ₹58600. The DA component was reset, and the total salary under the 7th CPC was ₹58600. The increase in salary from the 6th CPC to the 7th CPC was 14.53%, reflecting a more moderate but still essential adjustment to the pay scales.
| Component | 6th CPC | 7th CPC |
|---|---|---|
| Basic Pay (BP) | ₹22740 | ₹58600 |
| Dearness Allowance (DA) | ₹28425 (125%) | ₹0 |
| Total Salary | ₹51165 | ₹58600 |
| Increase % (BP+DA) | – | 14.53% |
What can be expected from 8th CPC
Let’ see the same employee’s Pay change on 01/01/2026
- Basic Pay as on 01/01/2026 (7th CPCP) is ₹81,200 and DA 58%.
- Total Salary = ₹81,200 + ₹47,100 = ₹128,300 (app.)
Now, we’ll project the new basic pay/total salary under the 8th CPC for overall increases of 14%, 20%, and 34%, applied to the current total salary:
Scenario 1: 14% Overall Increase
- Increase Amount: ₹128,300 * 0.14 = ₹17,962
- New Basic Pay (and Total Salary): ₹128,300 + ₹17,962 = ₹146,300(Rounded)
Scenario 2: 20% Overall Increase
- Increase Amount: ₹128,300 * 0.20 = ₹25,660
- New Basic Pay (and Total Salary): ₹128,300 + ₹25,660 = ₹154,000(Rounded)
Scenario 3: 34% Overall Increase
- Increase Amount: ₹128,300 * 0.34 = ₹43,622
- New Basic Pay (and Total Salary): ₹128,300 + ₹43,622 = ₹172,000(Rounded)
Summary Table:
| Scenario | Basic Pay (₹) (01/01/26) | DA (%) (01/01/26) | Total Salary (₹) (01/01/26) | Projected 8th CPC Basic Pay/Total Salary (₹) | Overall Increase (%) |
|---|---|---|---|---|---|
| Current | 81,200 | 58 | 128,300 | ₹128,300 | – |
| 14% | 81,200 | 58 | 128,300 | ₹146,300 | 14 |
| 20% | 81,200 | 58 | 128,300 | ₹154,000 | 20 |
| 34% | 81,200 | 58 | 128,300 | ₹172,000 | 34 |
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