As per the 7th Pay Commission's report, the rate of annual increment is remained to be unchanged i.e 3% per annum. But 7th Pay Commission recommended Pay matrix base so your annual increment may not be exact 3% but it will be little up and down to match the pay matrix.
As per 6th pay commission recommendation an employee is getting his increment 3% of the total of pay band plus grade pay in every year on 1 Jul.
But here an employee may get little more or less of 3% as pay has to move one step up in pay matrix. As in Pay Matrix, next level of pay is calculated in such way that it is 3% higher in next level.
Pay matrix
Suppose an employee drawing, salary is Rs.20500 in level 2nd index 3 then after increment his salary will move one index up and his salary will Rs.21100.
As per commission recommendation the minimum six months service required for becoming eligible for an increment. Like private sector tried to make the increment with performance related. The commission in its report said that:
"‘….There is a widespread perception that increments as well as upward movement in the hierarchy happens as a matter of course. The perception is that grant of MACP, although subject to the employee attaining the laid down threshold of performance, is taken for granted.
This Commission believes that employees who do not meet the laid down performance criterion should not be allowed to earn future annual increments. The Commission is therefore proposing withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.
This will act as a deterrent for complacent and inefficient employees. However, since this is not a penalty, the norms for penal action in disciplinary cases involving withholding increments will not be applicable in such cases. This will be treated as an “efficiency bar”. Additionally, for such employees, there could be an option to leave service on similar terms and conditions as prescribed for voluntary retirement”.