Recommendations of 7th pay Commission
Hereby we provide you recommendations of 7th Pay Commission. In forthcoming competitive exams, there may be one or two questions from this topic
Key Facts related to 7th Pay Commission:
- 7th Pay Commission was formed by the then UPA Government in February 2014.
- The commission is headed by Justice A K Mathur.
- The other members of the commission are Vivek Rae, a retired IAS officer and Rathin Roy, an economist. Meena Agarwal is Secretary of the Commission.
- The commission submitted its report to Finance Minister Arun Jaitley on 19th November 2015
- 7th Pay Commission’s recommendations are scheduled to take effect from 1 January, 2016.
- Recommendations will impact 47 lakh serving Govt. employees, 52 lakh pensioners, including defence personnel.
- Financial impact of implementing recommendations will be Rs 1.02 lakh crore – Rs 73,650 crore to be borne by Central Budget and Rs 28,450 crore by Railway Budget.
- Total impact of Commission’s recommendation will raise the ratio of expenditure on salary and wages to GDP by 0.65 percentage points to 0.7 per cent.
Recommendations of 7th Pay Commission:
- 55% hike in pay and allowances of Govt. employees
- The minimum pay in Govt. is recommended to be set at Rs.18000 per month.
- Maximum pay is recommended at Rs.2,25,000 per month
- Cabinet Secretary to get Rs.2.5 lakh as against Rs.90,000 per month pay band currently
- The rate of annual increment retained at 3%
- 24% hike in pensions
- One Rank One Pension proposed for civilian government employees on line of OROP for armed forces
- Ceiling of gratuity enhanced from Rs.10 lakh to Rs. 20 lakh; ceiling on gratuity to be raised by 25 per cent whenever DA rises by 50 per cent.
- Military Service Pay (MSP), which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only.
- MSP for service officers more than doubled to Rs.15500 per month from Rs.6000 currently; for nursing officers to Rs. 10800 from Rs. 4,200; for JCO/ORs. to Rs. 5,200 from Rs. 2,000 and for non-combatants to Rs. 3,600 from Rs. 1,000
- Short service commissioned officers will be allowed to exit the armed forces at any point in time between 7 to 10 years of service
- Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing allowances or in newly proposed allowances.
- The commission has proposed a status quo on the retirement age of Central government employees. Retirement age for staff of Central government is 60 years