What You Must Know About the 7th Pay Commission?

11 Nov, 2019

There are certain recommendations that were at the recommendation stage on 7^th pay commission with regard to the government employees until Jan 2017, as with effect from 1^st January 2017 it has been made effective and implemented from 1^st January 2017.

With the effect of the 7^th pay commission, all the government employees are benefited in the form of a pay hike and other benefits. The recommendations of the 7th Pay Commission shall benefit the pensioners the most.

However not all the recommendations have been given effect, through notification the government updates on the 7th pay commission effect.

Uttar Pradesh has already affected it since 1/01/2017.

The implementation of the 7th Pay Commission Pay Scale will have the following effect:

Increase by 16% for currently serving employees,
The pensioners will get a 23.63% rise in their income.
The biggest rise is the allowances, i.e. rise by approximately 63%.
The 7th Pay Commission has introduced the pay matrix in the form of a simple table.
Basically, this all started with when the government employees under the purview of 7th Pay Commission stipulated for certain demands, which was different in the following terms:
1. Different from the common treatment of similar cadres or groups,
2. Different in respect of standard pay for entry-level employees,
3. Demand for the enhancement in the frequency of Career Progression and transparency in pay structure, along with the current grade pay and many such other related demands.

The minimum pay shall begin with Rs 18000/-.
The Maximum pay will be fixed at Rs 2, 25,000/-(Recommended).
For the cabinet secretary and others at the same level, the Pay shall begin at Rs 2, 50,000/-.
The pay band has been changed now.
To arrive at new pay scales of existing employees a factor of2.57will be uniformly applied.
As it happened in the 6^th pay commission the annual increment rate will remain constant at 3%.

READ Employee Benefit Complete guide: Types, Costs, and Tips

For Pensioners following are the changes:

The parity is required to be brought about in pension for Civil and defense personnel’s and it shall include CAPF also in its ambit of revision.
The method of computing the revised pension has also been changed.
For Disability Pension a slab has been introduced, taking care of the disability element.
In case of the death while on duty, the rate of the amount of compensation to be paid shall be revised.
Recommendations have been made for revision of NPS for the establishment of a redressal mechanism

Gratuity

Maximum Gratuity^[1] amount has been increased to ₹20 lakhs
The maximum gratuity shall increase by 25% if the Dearness Allowance increases by 50%,

Defense Personnel Pay Scale

The basis introduced now is the officer’s rank, the area of posting, branch, and designation according to the recommendations made in the 7th Pay Commission.

Central Government employee’s pay scale is as given below: