7th Pay Commission

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7th Pay Commission

• Latest News and Updates 2017

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What is a Pay Commission?

• It is a body set up by the Indian Government.
• It provides recommendations to alter the salary
  structures of individuals who work for the
  Central Government.
• All military and civil divisions of the Central
  Government are covered under Pay Commissions.
• Since India received independence, seven pay
  commissions have been set up.
• The headquarters of the Commission is in New
  Delhi.
• After a new commission has been constituted, it
  has 18 months to make recommendations.

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7th Central Pay Commission

• Manmohan Singh, the ex-Prime Minister of India,
  approved the constitution of the 7th Pay
  Commission, and an announcement regarding the
  same was made by P Chidambaram, then Finance
  Minister of India, on September 25, 2013.
• The 7th Central Pay Commission will be headed by
  Justice Ashok Kumar Mathur.
• The Commission comprises of Vivek Rae (full-time
  member), Dr. Rathin Roy (part-time member), and
  Meena Agarwal (secretary) in addition to Chairman
  Ashok Kumar Mathur.

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Key Points of 7th Central Pay Commission

• A 14.27 hike was recommended by the Commission
  in basic pay at junior level.
• The minimum revised pay granted to an employee of
  the Central Government is Rs.18,000, which marks
  an increase of Rs.11,000 from the Rs.7,000 in the
  previous Pay Commission.
• The maximum pay is recommended at Rs.2,25,000 per
  month.
• A cabinet secretary will be eligible for a
  monthly salary of up to Rs.2.5 lakh, which is a
  significant increase from the Rs.90,000 offered
  under the previous Pay Commission.

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• The pay fixation of an employee under the new Pay
  Matrix as on January 1, 2016, the current pay
  (Pay in Pay Band in addition to Grade Pay) in the
  pre-revised structure as on December 31, 2015,
  will be multiplied by a factor of 2.57.
• There shall be two dates for granting increment
  to employees July 1 and January 1. Previously
  it was only July 1. Employees will only get one
  annual increment on one of the two dates
  mentioned above based on the date on which they
  were appointed, promoted, or granted financial
  upgradation.
• 53 of the 196 allowances offered to government
  employees have been recommended to be removed.

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• Around 47 lakh employees of the Central
  Government and 53 lakh pensioners are covered by
  the recommendations of the 7th Central Pay
  Commission.
• Government estimates show that the financial
  effect of implementing the 7th Central Pay
  Commission will be Rs.1.02 lakh crore.
• The rate of annual increment will be retained at
  3.
• Short service commissioned offices will have the
  option to leave the armed forces at any time
  between 7 to 10 years of service.
• The overall impact of the implementation of the
  7th Pay Commission will likely result in an
  increase of 0.65 points in the ratio of
  expenditure to GDP.

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• The retirement age of staff employees of the
  Central Government is 60 years.
• Ceiling of gratuity has been increased to Rs.20
  lakh from Rs.10 lakh, and ceiling on gratuity
  will be increased by 25 whenever there is a 50
  increase in DA.
• MSP (Military Service Pay) will be admissible
  only to personnel of the defence forces.
• The MSP for service officers has increased over
  two-fold from Rs.6,000 to Rs.15,000.

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• The MSP for nursing officers has increased from
  Rs.4,200 to Rs.10,800.
• The MSP for JCO/ORs has increased from Rs.2,000
  to Rs.5,200.
• The MSP for non-combatants has increased from
  Rs.1,000 to Rs.3,600.
• The 16 increase in basic salary is significantly
  lower in comparison with the 35 increase offered
  in the 6th Central Pay Commission.

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