27 July 2016

7th Pay Commission notification at a glance

New Delhi: In a bonanza for 4.8 million central government employees, the government on Monday issued notification and resolution for implementation of the 7th Pay Commission, which had given an overall hike 14.29 percent in basic pay.

Check out the followings to know the benefits and losses of Central government employees under 7th Pay Commission notification and resolution at a glance.

1. The government has notified a 2.57-time hike in basic pay

2. The minimum pay of central government employees with effect from January 1, 2016 will now be Rs 18,000 per month, from existing Rs 7,000 per month.

3. The highest level of Cabinet Secretary, the salary would hike up from Rs 90,000 a month to Rs 2.5 lakh.

4. The new pay structure has dropped the pay band and grade pay and okayed a new pay matrix.

5. A fitment factor of 2.57 will be applied across all levels in the pay matrices. After taking into account the DA at prevailing rate 125 per cent.

“With regard to fixation of pay of the employee in the new Pay Matrix as on 1st day of January, 2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31st day of December, 2015 shall be multiplied by a factor of 2.57,” the notification said.

6. There shall be two dates for grant of annual increment, January 1 and July 1, every year instead of the existing July 1 only. However, the rate of annual increment has been retained at 3%.

7. Central government Employees will be entitled to only one annual increment on either of these two dates depending on the date of appointment, promotion or grant of financial up-gradation.

8. Central government Employees will get no new allowances (except Dearness Allowance) with their new pay structure as the cabinet referred the 7th Pay Commission recommendations relating to allowances to a committee headed by Finance Secretary.

The Committee will submit its report within a period of four months, till a final decision, all existing allowances to be paid as per the existing rates in existing pay structure.

9. Dearness Allowance after coming into force of the revised Pay structure shall undergo change accordingly and will be linked to the average index as on January 1, 2016.

10. The Modified Assured Career Progression (MACP) scheme will continue to be administered at 10, 20 and 30 years of service as before.

11. The benchmark for performance appraisal for MACP has been enhanced from Good to Very Good.

12. The annual increments will be withheld in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service.

13. Chiefs of regulatory bodies including SEBI and TRAI will now get a consolidated pay package of Rs 4.5 lakh per month, while their full-time members will get Rs 4 lakh each.

14. The arrears of hike in basic pay shall be paid during this financial year 2016-2017.

The Union Finance Minister Arun Jaitley said in in the Rajya Sabha during Budget session, “the financial impact of the 7th Pay Commission recommendations is less than that of the 6th Pay Commission.”

Source : SenTimes

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