7th Pay Commission had submitted its report yesterday to the Ministry of Finance, Government of India. It was the most awaited pay commission in the history of India.
The Seventh Central Pay Commission recommendations will be implemented from January 1, 2015. If government do not able to provide the new salary from January 1, 2015, they will provide the arrears to all the central government employees.
Highlights of 7th Pay Commission Report Submitted to the Finance Ministry, Government of India
- Minimum salary per month would be Rs. 18,000 for all central government employees including class three and class four. (Expected and rumoured minimum salary was about Rs. 21,000)
- Highest salary per month would be Rs. 2,50,000, given to the Cabinet Secretary.
- 47 lakhs current central government employees will get benefited from 7th CPC recommendations
- 7th CPC recommended a total hike of 23.55 per cent in pay and allowances
- 7th Pay Commission recommendations to be implemented from January 1, 2016.
- Central government pensioners will get 24 per cent rise in pension.
- All government employees will get 3 per cent increment each year.
- 7th Pay Commission also recommended ‘One Rank, One Pension’ for all civilians on line of OROP for armed forces.
- Gratuity ceiling raised from Rs. 10 lakh to Rs. 20 lakh. Ceiling on gratuity to be raised by 25 per cent whenever DA rises by 50 per cent.
- After implementations of 7th Pay Commission recommendations, government have to bear Rs. 1.02 lakh crore in budget and Rs. 28,450 crore by the railway budget.
- Total impact of Commission’s recommendation to raise the ratio of expenditure on salary and wages to GDP by 0.65 percentage points to 0.7 per cent.
- Military Service Pay (MSP) is now more than double. For officers MPS is more than doubled to Rs. 15,500 from Rs. 6,000. Nursing officers will get Rs. 10,800 from Rs. 4200 and JCO/ORs to get Rs. 5200 instead of Rs. 200. While non-combatants to get Rs. 3600 from Rs. 1000.
- Short service commissioned officers will be allowed to exit from the armed forces between 7 to 10 years of service.
- 52 lakh pensioners of central government will also get benefited after implementations of 7th Pay Commission recommendations.
- Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing allowances or in newly proposed allowances.
Article first published on November 20, 2015.