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7th pay Commission: what it means to government employees, its 7 key points

A panel of secretaries headed by cabinet secretary P.K. Sinha earlier this month submitted its report on the pay commission’s recommendations. The government had set up the panel in January.
Arun Jaitley : Union Finance Minister

In what has to be the biggest announcement made by the Modi government for over one crore central government employees, the Union cabinet on 29 June cleared the recommendations made by the 7th pay commission. The decision will benefit over 48 lakh current employees and 55 lakh pensioners.

After the decision was made, Finance Minister Arun Jaitley congratulated the central government staffers. “Congratulations to central government officers, employees & pensioners on a historic rise in their salary and allowances through the 7th CPC,” he wrote on Twitter.

A panel of secretaries headed by cabinet secretary P.K. Sinha earlier this month submitted its report on the pay commission’s recommendations. The government had set up the panel in January.

Here are 7 key points of the 7th pay commission

1The commission recommended a 23.55 percent increase in salaries, allowances and pension of central government employees and pensioners.

2, The minimum monthly pay has been fixed at Rs.18,000 and the maximum at Rs.2.5 lakh for the cabinet secretary, the country’s senior-most civil servant.  Earlier, under the 6th pay commission the monthly minimum pay was a meager 7,000.

3, The date of implementation for the recommendations is January 1, 2016.

4, 7th Pay Commission has also recommended for Uniform Annual Increment of 3%

5, The commission also recommended for an enhanced life insurance up to Rs.50 lakh for government employees up from just Rs.120,000 under the 6th pay commission. But employees will need to contribute up to Rs.5,000 per month for the insurance.

6, While Union government employees will get the immediate benefit of the pay commission recommendations, public sector units and autonomous government institutions will have to wait a little longer.

7, As per the government’s own estimates, the total financial impact of implementing the pay commission recommendations in the 2016-17 fiscal is likely to be to the tune of Rs 1,02,100 crore.

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