Key highlights of 7th Pay Commission report
7th pay commission report Highlights:
- Minimum pay is 18,000/-
- Grade Pay System abolished
- fitment formula will be 2.57. So using present basic pay, 7th CPC pay can be calculated by multiplying the same with 2.57 factor.
- Increase in Military service Pay increased to 16,500
- 3% annual increment
- 52 allowances abolished
- 16% increase in pay
- 23.55% increase overall salary when taking in to increase in allowances also
- 24% increase in Pension
In a bonanza for central government employees, the Seventh Pay
Commission on Thursday submitted its final report to Finance Minister
Arun Jaitley recommending a 22-23 percent jump in their salary and
allowances.
The Pay Commission headed by Justice A K Mathur has suggested a 15
percent increase over the basic salary plus DA for the central
government staff. An increase in allowances like HRA has also been
recommended.
The total increase will be 23.55 percent of the gross salary (basic
plus DA plus allowances). The pay commission has also proposed a status
quo on the retirement age of central government employees. Retirement
age for central government employees is 60 years now.
The recommendations of the 7th Pay Commission are scheduled to take effect from January 1, 2016.
Besides Chairman, other members of the commission are Vivek Rae, a
retired IAS officer of 1978 batch, and Rathin Roy, an economist. Meena
Agarwal is secretary of the commission.
The central government constitutes the pay commission every 10 years
to revise the pay scale of its employees and often these are adopted by
states after some modifications.
The Commission was set up by the UPA government in February 2014 to
revise remuneration of about 48 lakh central government employees and 55
lakh pensioners.