7th Pay Commission

The new central pay commission i.e. the 7th pay commission has been cleared within the cabinet. The cabinet has accredited virtually all of the proposals given underneath the 7th pay commission for the central govt. present workers and retired workers. As per the stories of the 7th pay commission, it can get carried out from 1st Jan 2016. There are a number of remodelling of the outdated pay structures of the government. workers on this pay commission. Also, the allowances construction will even be revised as many allowances might be completely discontinued. The has been an enormous leap within the most salary and minimal salary of the central govt. workers.

Seventh Pay Commission launch date

On 29th June 2016, the centre has agreed to the suggestions of the pay commission committee which proposed their proposals again within the latter half of 2015. The set date of implementation of the 7th pay commission is 1st January 2016. This means the beneficiaries of the central pay commission will get the advantages calculated from the implementation date i.e. 1st Jan 2016. The implementation interval of the 7th pay fee is nonetheless very much less in comparison with the previous pay commissions. The final pay commission was carried out after an extended wait of 32 months. Whereas the staff have a factor to rejoice as the brand new pay commission might be carried out simply after 6 months of the particular implementation date.

Beneficiary of seventh pay commission

The direct beneficiaries of the brand new 7th central pay commission are the central govt. workers posted in numerous departments. In addition to the in-service staff of the central government, all of the retired workers of the central govt. might be straight benefited with the brand new pay fee, as they obtain their pensions as per the continued pay fee. The variety of beneficiaries is multiple crores. An estimated variety of 47 lakh central govt. workers are at current in–service. Apart from this, roughly 53 lakh retired central govt. employees might be benefited from the 7th pay fee. These figures additionally embody the defence workers.

Sl. No.Beneficiary AttributesApproximate power
1Total nos. of in-service beneficiaries47 lakh
2Total nos. of retired pensioners beneficiaries53 lakh
3Total nos. of in-service defence personnel14 lakh
4Total nos. of retired defence personnel18 lakh

 Benefits below 7th Pay

This 7th pay commission will carry with itself new pay matrices for the central govt. employees all of the outdated pay bands might be reconstructed together with the assigned grade pays. The workers and pensioners will expertise a pay hike of around 2.57 occasions, which goes to be the fitment issue for this central pay commission. The minimal and most pay of a central govt. the employee will get way over double, which is an enormous good thing about this pay commission. Several allowances might be remodelled whereas some might be merged to type new allowances.

Sl. No.Seventh CPC attributesInformation
1Date of Implementation1st Jan 2016
2Union cabinet approval Date 29th June 2016
3Additional monetary burdenRs. 1.02 lakh crore
4Fitment factor2.57
5Annual Rate of increment3 % of primary
6Maximum payRs. 2.5 lakh
7Minimum PayRs. 18,000
8Gratuity ceilingRs. 20 lakh
9HBA ceilingRs. 25 lakh

 Introduced Pay Matrix in seventh Pay CPC

A very new and renovated pay matrix has been ready and might be carried out underneath the 7th central pay commission. This new pay matrix may have separate rows of pay bands and grade pays the place the central govt. workers might be fitted. The precept issue and the rationale elements of the pay matrices will even be adjusted accordingly.

Minimum Pay

A significant side of the brand new pay commission i.e. the 7th central pay commission is the minimal pay. This is the beginning pay off the bottom-most workers of the central govt. The suggestions of setting the minimum pay to Rs. 18,000 per 30 days have been accredited by the cupboard, which is a serious factor to rejoice. Thus, a central govt. the worker is not going to get a month-to-month salary lower than Rs. 18,000 per 30 days. The minimal pay in accordance with the 6th pay fee, which goes to get replaced was RS. 7,000 per 30 days.

Maximum Pay

Under the 7th pay fee, the utmost salary which a central govt. the worker would get will even hike by an enormous margin. Under the present 6th pay commission, the utmost salary was Rs. 90,000 monthly. This salary was drawn by the highest officers of the ranks equal to the cupboard secretariats. This most pay will rise from Rs. 90,000 to RS. 2.5 lakh per 30 days, which is a serious profit to the highest officers.

Pension After seventh Pay Commission

There are around 53 lakh workers of the central govt. who’ve retired from their service. They obtain their month-to-month pension and different retirement advantages in accordance with the pay commission adopted by the centre. After the implementation of the 7th central pay fee, their pension buildings will get modified. They will even expertise the same fitment issue of two.57 to their fundamental salary. Also the present National Pension System (NPS) will even be reformatted and streamlined.

Fitment factor (ff) Ratio for all matrices 

The fitment factor is the quantity which might be uniformly multiplied to the fundamentals of every row of the pay matrix. The current fundamental pays of the central govt. employees which is the addition of the pay scale and the grade pay might be multiplied by the brand new fitment issue for the 7th central pay fee. The cupboard has handed the advice of the proposed fitment factor, which is 2.57. This means the essential salary of all of the central govt. workers and pensioners might be multiplied with the fitment issue of two.57.

Rate of increment In seventh Pay Commission

All in–service workers and pensioners get an annual salary increment. The 7th central pay commission has saved the outdated annual rate of increment to three per cent. This is likely one of the unchanged elements underneath the paid fee. This fee of increment is relevant to the essential salary of the central govt. workers. However, after the fitment issue of two.57 is utilized, the annual increment will even get hiked.

Defence Pay Matrix 

Some modifications within the defence pay matrix might be carried out underneath the 7th pay commission. The rationalisation index for the ranks of Brigadier, Lieutenant Colonel and Colonel might be enhanced. Also, there might be parity among the many central police forces.

Rates of Military Service Pay (defence)

For the defence forces, the advantages of the 7th pay commission are that they are going to obtain better army service pay together with the conventional pay hike. There are around 14 lakh in-service defence drive workers together with 18 lakh retired defence personnel who will get benefitted. The lowest MSP at current is Rs. 1,000 for the low ranks the place as the best rank defence officers get MSP of Rs. 15,500

Gratuity ceiling rise

The dying gratuity ceiling has additionally been raised from Rs. 10 lakh to Rs. 20 lakh.  In addition to this, there might be an enhancement of 25 per cent dying gratuity when the Dearness Allowance fee will get elevated by 50 per cent.

Leave Facility: Hospital Leave, Special Disability Leave and Sick Leave

At current, there are three current medical depart amenities out there particularly Sick Leave, Hospital Leave and Special Disability Leave. These three leaves might be merged to have a brand new medical depart named Work Related Illness and Injury Leave. This depart will allow full salary and allowance profit to the central govt. workers

House Building Advance After seventh Pay Commission

At current, the home constructing advance, generally referred to as HBA is sanctioned as much as Rs. 7.5 lakh per worker. But the 7th pay commission has raised this HBA ceiling to Rs. 25 lakh. This is a serious profit to the staff who want funds for housing.

Advances for Medical Treatment

A complete of 4 advances have been saved curiosity free for the central govt. workers underneath the 7th pay fee. One of those advances is the Medical Treatment Advance which is completely interest-free. In addition to this, the opposite three are the LTC, travelling allowance of worker and the travelling allowance for households of the staff who’re deceased

TA for household of deceased workers

The households of the deceased central govt. workers get travelling allowance as per the suggestions of the central pay fee. The advance is a curiosity-free one. This TA is relevant just for rail and bus journeys.

LTC has been retained

As per the 7th pay commission, the LTC quantity which the central govt. workers get might be unchanged. They will obtain the outdated LTC advance they have been getting within the 6th pay commission.

Interest-free advances have been abolished

All the advances which have been curiosity-free are abolished underneath the brand new 7th pay fee. At current solely the above talked about 4 advances might be saved curiosity free, i.e. LTC, TA of worker, HBA and TA for deceased workers’ household reliable members.

CGEGIS –Central Government Employees Group Insurance Scheme 

However, within the sector of the group insurance coverage coverage, the suggestions of the 7th pay fee weren’t saved by the cupboard. However, the attraction has been made to rationalize and modify it with by decreasing the insurance coverage premium charges and maximizing the advantages.

Seventh Pay Commission In State

1Chandigarh Pay Scale In seventh Pay Commission
2Andhra Pradesh Pay Scale In seventh Pay Commission
3Gujarat  Pay Scale In seventh Pay Commission
4Maharashtra Pay Scale In seventh Pay Commission
5New Delhi Pay Scale In seventh Pay Commission
6Rajasthan Pay Scale In seventh Pay Commission
7West Bengal Pay Scale In seventh Pay Commission
8Bihar Pay Scale In seventh Pay Commission
9Goa  Pay Scale In seventh Pay Commission
10Haryana Pay Scale In seventh Pay Commission
11MP Pay Scale In seventh Pay Commission 
12Punjab Pay Scale In seventh Pay Commission 
13Arunachal Pradesh Pay Scale In seventh Pay Commission 
14Odisha Pay Scale In seventh Pay Commission 
15Uttarakhand Pay Scale In seventh Pay Commission 
16TamilNadu Pay Scale In seventh Pay Commission 
17Kerala Pay Scale In tenth Pay Commission 
18 Chhattisgarh Pay Scale In seventh Pay Commission 
19 Karnataka Pay Scale In seventh Pay Commission
20Meghalaya Pay Scale In fifth Pay Commission 

One of essentially the most distinguished information within the current market is 7th pay commission has been submitted and there are immense curiosities of individuals relating to the general particulars about what the brand new pay scale and grade pay shall be. An entire new matrix system has been launched by the commission and it includes 18 horizontal ranges for caring for fixation of pay on MCAP.

It is an incontrovertible fact that on one hand, it’ll present an enormous stimulus within the financial system of coming years. Like the actual property and auto sectors shall undoubtedly have big beneficiaries. But alternatively, this state of affairs shall be inflammatory in nature and thus it’ll create stability inside inflation and progress. However, in this article, we’re going to share all the small print relating to all grade pay and pay scales.

The particulars of the recent pay structure

Firstly the beneficial date of implementation was 1st January 2016. Now, allow us to delve deep into the monetary implications. In the brand new pay construction, the problems which have been raised because of the grade Pay Certificate, to convey way more transparency, the present format of grade pay and pay bands have been distributed by a whole new pay matrix. The pay matrix shall be the first to consider figuring out the standing of any central authorities worker. This system is certainly a lot better than the earlier codecs the place grade pay was the key device for figuring out the standing of workers. A 23.55% hike inside the salaries has been beneficial by the 7th pay fee which shall be efficient from the present 12 months with the minimal salary vary of a central authorities worker might be Rs 18000.

The totally different options of grade pay and pay scale in 7th pay commission

Fitment: A uniform fitment issue of 2.57 shall be utilized for all the staff. This was an essential change since it’ll convey uniformity inside the central authorities workers. It has been talked about by the fee that beforehand fitment issue was decided in accordance with grade pay, which creates inequality inside the workers. Also, the inconsistency inside computation of grade pay or the spacing of pay bands has a direct bearing on fitment profit.

Annual Increment: One of the crucial adjustments that have been introduced on this 7th pay commission is, employees, shall be supplied with a sure goal for 12 months to find out the extent of performances. The increment fee shall stay identical to the earlier of three%. But the implementation of the goal is certainly going to vary the notion of central authorities workers. Because the staff should not be in a position to attain the goal, an annual increment shall not happen. This breaks up the widespread notion that increments are going to happen inside the hierarchy as a matter of fact. Thus, the grant for MCAP shall be solely based mostly relying on the edge of efficiency.

Military service pay (MSP): This is one other essential side of the 7th pay commission all grade pay and pays scale. The MSP could be stated to be a type of compensation that shall be supplied to army personnel and protection forces. Previously, the MSP was in accordance with the ranks and it was payable for all ranks that features Brigadiers. And within the revised MSP, Non-combatants shall have a grade pay of 3600, JCO/ORS shall have 5200 as grade pay, Nursing officers shall have 10800 and Service officers may have 15500 as grade pay.

Lateral Entry: An entirely new type of lateral entry settlement has been fashioned inside the protection forces which can be in sync with the particular necessities of a company by which such person shall be absorbed. A brand new package deal has been launched for the CAPFs lateral entry.

Short Service Commissioned officers: The SSC officers shall now have the allowance in exiting Armed forces inside any level of time between 7-10 years. The officers shall even have a good thing about terminal gratuity that’s identical to 10.5 months of reckonable emoluments. A brand new program which is totally funded for one 12 months has been launched for the M. Tech programme or Executive programmer at premier Institutions.

Allowances: The allowances have been modified to an entire new extent. The newly formatted nine-cell matrix would be the construction of allowance for central authorities workers. One extra cell inside this matrix stays on the prime which is called the Siachen Allowance. The danger and hardships matrix has been created for governing allowances relating to dangers and hardships. The Siachen Allowance has been said as the highest allowance for danger and hardships and it is a very important word that there isn’t any different R-H allowance that is greater than the Siachen Allowance.

House Rent Allowance: According to the brand new fee, the essential pay has been uplifted, and that is the rationale House lease shall be supplied at 8%, 16% and 24% of recent fundamental pay relying on Class Z, Y, X cities. And one other reason behind aid for the federal government workers is with an increment in DA to 50%, there shall be a revised fee of HRA, which might be 9%, 18% and 27%. It might be additional revised when the DA reaches 100%.

But one of many main issues that prevailed with earlier pay commission’s grade pay and the pay scale is the CAPFs, PBOs for protection and Indian Coast guards are fully disadvantaged of allowances. This is completed on the grounds that the compensation for housing shall be allowed for approved married institutions solely. But on this HRA protection, has been expanded to be attained by all.

Advances: The advances that have been non-interest-bearing have been abolished. And other than curiosity bearing developments, the home construction and private laptop advances are retained. The home constructing development on this current pay commission has enhanced to 25 Lakh from the current allowance to 7.5 Lakh.

Medical Facilities: There has been the advice of a whole new well being and Insurance scheme and the pensioners shall not be exempt from it.  Also, for the good thing about pensioners who have been residing outdoors in the CGHS space, cashless medicinal amenities shall be supplied. The CGHS shall be empanelled inside CS for such facility being supplied to the pensioners. The postal pensioners shall even be merged together with CGHS.

Gratuity: There has been an increment inside the ceiling gratuity to20 Lakh that was beforehand 10 Lakh. Also, there have been suggestions for the increment of ceiling gratuity in case the DA will get raised to 50%.

Pension: the pension scheme for civil workers has been revised that features CAPF personnel as nicely. This is certainly going to convey parity inside current retirees and previous pensioners for the equal size of service inside pay scale throughout retirement. The previous pensioners might be fastened inside the pay matrix that has been beneficial by pay fee. But the quantity shall improve for notional pay of retirees by addition of whole increments that have been earned at 3%. For the army and protection personnel, this will even embody the MSP as admissible.

A quick tabular overview of the seventh pay commission

SL NOFactors of the seventh pay commissionA quick element
1.Fitment factorAn important change that has been introduced on this 7th pay commission. A uniform 2.57 fitment factor shall be supplied to all of the central authorities workers.
2.Annual IncrementThe increment fee is 3%, however, the extra issue is, this increment shall be carried out in accordance with efficiency. This means no increment if the goal is failed.
3.MSPPreviously MSP was paid in accordance with the ranks of army personnel, however, within the revised plan, the grade pay of Military service has elevated to an ideal extent.
4.Lateral entryThis gives a brand new type of settlement inside protection forces that meets particular necessities.
5.SSC officersAllowing to depart the armed forces inside a time period of 7-10 years. Also, a terminal gratuity of 10.5 months of reckonable emoluments shall be allowed.
6.Allowances52 allowances have been abolished and there was the formation of danger and hardship allowance matrix. The Siachen allowance is on the prime of allowance matrix.
7. House leaseThis has been achieved in accordance with fundamental pay. Also CAPFs, coast guards and PBOs are supplied with this comparable alternative which was beforehand not out there for these officers.
8.AdvancesThe 7th pay fee shall not enable the good thing about non-interest allowances. But workers can relaxation assured that the opposite advances like Personal laptop advance and residential constructing advance shall be out there. And The home construction advances has additionally elevated.
9.Medicinal amenitiesA brand new medical insurance scheme has been launched for the pensioner. Even individuals who are residing inside CGHS space shall be supplied with cashless medicinal advantages.
10.GratuityThe ceiling gratuity shall be elevated to twenty Lakh and with the increment of DA it has been beneficial to extend.
11.PensionPension schemes have been revised which additionally contains CAPF personnel.