7th Pay Commission Top points that employees really need to know
7th Pay Commission: In a bid to benefit over 1 crore central government employees, which includes 47 lakh employees and near 53 lakh pensioners, the central cabinet chaired by the Prime Minister Narendra Modi approved the 7th Pay Commission that came into effect from April 1, 2016.The cabinet also decided to pay the arrears of pay and pensionary benefits were to be paid during the then financial year 2016-17 while on previous occasions, the employees had to wait for 19 months in 5th CPC while in 6th CPC, the tenure was around 32 months.
However, there are some important facts that each and every employee and the pensioner must know about the 7th CPC:
1] The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.
2] All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility, and accountability at each step in the hierarchy.
3] The minimum pay has been increased from Rs. 7000 to 18000 p.m. Starting salary of a newly recruited employee at the lowest level will now be Rs. 18000 whereas for a freshly recruited Class | officer, it will be Rs 56100. This reflects a compression ratio of 1:3.12 signifying that pay of a Class | officer on direct recruitment will be three times the pay of an entrant at the lowest level.
4] For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.
5] Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in the future will be 2.57 times than at present.
6] The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Central Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.
7] Some other decisions impacting the employees including Defence & Central Armed Police Forces (CAPF) personnel include :
a) Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 per cent……Read More>>