Key highlights of 7th Pay Commission report

| November 19, 2015

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.

The Union Cabinet had extended the term of the panel in August by four months, till December. The 6th Pay Commission was implemented with effect from January 1, 2006.

Download 7th Pay Commission report


Category: News, Seventh Pay Commission

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