Wednesday, 22 June 2016

Here's how the 7th Pay Commission can affect your pay, most likely from August 2016!

The 7th pay commission has everything to make a central government employee happy and satisfied! The Commission is most likely to decide on a 30% hike on the basic pay. The minimum basic monthly salary recommended by the Commission was Rs 18000 and a 30% hike will make it to Rs 23500! The 7th Pay Commission headed by Justice AK Mathur (Vivek Rae, retired IAS Officer; Rathin Roy, economist and Meena Agarwal, Secretary of the Commission are some of the other members of the Commission) had submitted its report to the Finance Minister earlier this year in the month of January.
The Commission had suggested several recommendations like 23.55% increase in the pay and allowance, 24% hike for pensioners and OROP (One Rank One Pension) for central government employees and paramilitary personnel. The exact decision of the Commission is impending. The Empowered Committee of Secretaries (13 member secretary level Committee to review the recommendation of the Pay Commission) is likely to make comparisons between the recommendations of the 7th pay commission and the comments from various stakeholders on the 7th Pay Commission. An Implementation Cell has been created in the Finance Ministry to work as the Secretariat of the Empowered Committee of Secretaries.

A Layman’s Guide to Pay Commission Pay Commission has been set up by the Government of India, since Independence. The Commission is involved in giving recommendations regarding the salary structure of the Central government employees working in the civil and military divisions. Till date seven pay commissions have been set up for the same purpose.
The announcement for the 7th pay Commission was made on 04 February 2014. While Justice AK Mathur was the head of the Commission, other notable members included Vivek Rae, Dr. Rathin Roy and Meena Agarwal. What will be the lowest and highest basic salary under 7th Pay Commission?
Under 7th Pay Commission the lowest and highest basic salary are Rs 18000 and Rs 250000, respectively. However the 30% hike will round the figures to Rs 23500 and Rs 325000 respectively.

The figures reveal the drastic difference between the salary structure of the 7th Pay Commission with that of the 6th Pay Commission. When is it likely to be implemented? As mentioned above, the decision regarding implementation of the 30% hike is impending. However as per the latest reports it is likely to be implemented in August 2016.

What are the other salient features of the 7th Pay Commission?

Annual increment has been hiked to 3%. HRA has been increased to 27%, 18% and 9%, if the DA crosses 50%; and further revision to 30%, 20% and 10%, when DA crosses 100%.

Introduction of Health Insurance Scheme replacing the Central Government Health Scheme (CGHS).

Introduction of OROP pension scheme for defence personnel

Child Care Leave to be granted at 100% of salary for first 365 days and at 80% for next 365 days.

CCL to be granted for single male parents.

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