7th Pay Matrix for Odisha Government Employees

The 7th Pay Matrix for Odisha government employees is a revised pay structure designed to provide a more transparent, streamlined, and enhanced salary system. It replaced the older pay bands and grade pay system, aiming to bring the remuneration of state government employees closer to that of their central government counterparts.

Key Features and Implementation:

• Implementation Date: Effective from January 1, 2016; revised salaries drawn from September 2017 onwards, with arrears cleared in installments.
• Pay Matrix System: A simplified chart replacing the old Pay Band and Grade Pay system, showing pay levels and stages clearly.
• Fitment Factor: A uniform factor (typically 2.57) is multiplied with existing basic pay to determine new pay under the matrix.
• Levels and Cells: Each "Level" corresponds to a role and includes "Cells" for increments. Annual increments raise employees through the cells.
• Benefits:
  • Increased Basic Pay for most employees.
  • Enhanced Allowances like DA and HRA, linked to revised pay.
  • Simplified Structure for easier understanding and transparency.
  • Higher Gratuity ceiling.
  • Pension Revision based on the new Pay Matrix.

Impact on Odisha Government Employees:

• Approximately 8 lakh employees and pensioners benefited from the revision.
• The reform added fiscal pressure on the state exchequer, managed via phased implementation.
• Arrears demands were resolved by installment-based payouts.

In essence, the 7th Pay Matrix in Odisha marked a significant reform in the state's government employee remuneration, aiming for a more equitable, transparent, and enhanced pay structure in line with national recommendations.