Tuesday, 5 July 2016

Implementation of Recommendations of Seventh Central Pay Commission (7 CPC) : Col Ramesh Khatri (Retd)

Indian Military Veterans

Dear All,
The Cabinet Committee has approved recommendations of the 7 CPC. These shall be effective from 1st January, 2016.
7 CPC has amalgamated the Basic Pension and the DA Relief on it. For example, if A’s post OROP Basic Pension is Rs. 1.00 and current DA Relief on it is @Rs 1.25. Hence, Rs 2.25 (1.00 + 1.25)
7 CPC has allowed an ENHANCEMENT of 0.32 [2.57 (proposed by 7 CPC) – 2.25 (amalgamated pension)] on the post OROP Pension, ie, 1.00 x 0.32  =  0.32.
Please add this 0.32 to A’s post OROP Amalgamated Pension, that is, Rs. 2.25 + 0.32  = Rs. 2.57 shall be A’s (final) Pension wef 01 – 01 – 2016.  This is what ‘A’ (you) shall be receiving in August 2016 with the Pension of July 2016.
As the enhancement is being paid from 01 – 01 – 2016, hence, the arrears of six months (Jan – June 2016) Rs. 0.32 x 6  = Rs. 1.92 are likely to be paid in August or September 2016.
‘A’ (You) will receive the above Minus the Income Tax.
I am sure, it not being complicated and everyone can calculate what they would be receiving!!.
A’s post OROP Pension = Rs. 36130
DA Relief on Rs. 36130 x 1.25 = Rs. 45163
Amalgamated Pension (36130 + 45163) = Rs. 81293
Enhancement (0.32) of post OROP (36130 x 0.32)  =  Rs Rs 11562
Hence, 7 CPC Recommended Pension effective 01–01–2016 shall be (81293 + 11562) = Rs.  92855

Deduction of Income Tax, say@12855 per month. Hence net pension being remitted to A’s bank account will be (92855 - 12855) = Rs. 80,000 per month
With kind regards,
Colonel Ramesh Khatri (Retd)

(Source- Via e-mail from Col SS Sohi (Retd)

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