7th Pay Commission Highlights
We have shown everything you need to know about 7th Pay Commission here. The time for coming of seventh pay commission is due. Hence, we bring this very informative post on the 7th pay commission highlights. We have highlighted the prominent feature of this pay revision. Pay Commission is established by Government of India after independence. It was introduced to revise salary structure of government employees at every 10 years. The sixth pay commission was implemented in the year 2006. The 7th pay commission will be increasing the richness of employees by 24%. The salient features of seventh pay commission are shared in this post. Know how your salary will be changing after its implementation. The revisions in pay will be considered effective from 1st January 2016. The report can be downloaded from the official site 7cpc.india.gov.in.
It has been more than four months that the report was submitted to the government. However, the recommendations are still awaited. The 7th central pay commission was chaired by Justice Shri Ashok Kumar Mathur. Other members were Shri Vivek Rae, Dr. Ratin Roy and Smt. Meena Agarwal. The commission was based in Delhi.
Key 7th Pay Commission Highlights
Here are some of the 7th pay commission highlights of the seventh central pay commission:
- The minimum monthly wage will be 18000/- INR. It was Rs. 7000 minimum under 6th pay commission. (by using fitman factor 2.57).
- The maximum pay will be Rs. 2.25 lacs monthly for Apex scale. The same will be Rs. 2.50 lacs per month for a cabinet secretary.
- The minimum yearly increment of 3%
- For retired people, the 7th pay commission will bring 24% increase in pensions.
- 14% hike in pay amount.
- 24% hike in salaries including the fringe benefits.
- The seventh pay commission introduces PRP (Performance Related Pay) for the first time. Under PRP, the non-performers will not be eligible for the prescribed hike. The PRP is introduced to promote work culture.
- The ceiling of the gratuity is increased from Rs. 20 lakh from Rs. 10 lakhs. It will also be increased by 25% every time the DA is increased by 50%.
- One Rank One Pension is proposed for civilian and defense personnel.
- New Pay Matrix is introduced. Grade pay and pay band will be abolished.
The new pay commission also proposes for a retirement age of 60 years for central government employees. It also suggests the abolition of the grade pay and pay band. However as mentioned above, it retains annual increment of 3%. The 7th central pay commission is also discontinuing many allowances. The overall impact of the revised pay for Group C employees is not very bright. The hype of big bonanza created over the new pay commission may not be real. 7th pay commission highlight will give you each and every information about the same. In case, if any doubt use the comment section to clear it. Projected 7th pay commission pay scale has also been produced by us.
Impact of 7th Pay Commission for Group C Employees
Group ‘C’ employees form almost 85% of the total government employees. Hence, we have presented here how Group C employees will be effected by the new commission. The negative impact of final pay is due to increase in a couple of deductions. The deductions in NPS and Central Government Employees Group Insurance Scheme will go up substantially. Hence, the final take away from Group C employees might be eventually lesser compared to that of before 7th pay. All the 7th cpc latest news has been given here.
The new commission is abolishing 52 allowances entirely. Other 36 allowances are abolished individually. But they are submerged in the existing allowances. The HRA will be paid at a rate of 24%, 16% and 8% of new basic pay. This will be applied respectively to class X, Y and class Z cities.
As we are writing this post, the recommendations are just on the edge of finalization by the Secretaries group. Fortunately, the fitman factor of 2.8 is likely to be recommended instead of 2.57. We will be updating the final recommendations of the 7th pay commission highlights. The recommendations are expected to bring better scales for government employees. Stay tuned in to remain updated on the final recommendations of the new commission for pay. We will be soon updating you on 7th pay calculation using a simple way. 7thpaycommission.co.in is initiated to bring all latest updates on 7th pay commission scales, allowances, schemes, and deductions.