The Seventh Pay Commission headed by Justice AK Mathur on Thursday submitted its report to Finance Minister Arun Jaitley and has recommended 23% hike in gross salary of central government employees.
The recommendations will be considered by the Union Cabinet and if approved, it will be implemented with effect from January 1, 2016.
Here are the major highlights of recommendations by the 7th Pay Commission.
1. The commission has recommended a 16 per cent hike in basic salary plus increase in DA and allowances like HRA.
2. The total increase will be 23.55 percent of the gross salary (basic plus DA plus allowances).
3. The minimum pay in govt is recommended to be set at Rs 18,000 per month.
Also Read: 7th Pay Commission recommends 23% salary hike, basic salary set at Rs 18,000 pm
4. Maximum pay is recommended as Rs 2,25,000 per month for Apex scale and Rs 2,50,000 per month for Cabinet Secretary and others at the same level.
5. The rate of annual increment retained at 3per cent.
6. One Rank One Pension proposed for civilian government employees on line of OROP for armed forces.
7. 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.
8. Military Service Pay (MSP), which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only.
9. MSP for service officers more than doubled to Rs 15,500 per month from Rs 6,000 currently; for nursing officers to Rs 10,800 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.
10. Short service commissioned officers will be allowed to exit the armed forces at any point in time between 7 to 10 years of service.
11. Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing allowances or in newly proposed allowances.
12. 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.
13. Total impact of are expected to entail an increase of 0.65% points in the ratio of expenditure on to GDP.
14. 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.
15. Recommendations will impact 47 lakh serving govt employees, 52 lakh pensioners, including defence personnel.
16. The 16 per cent hike in basic salary is much lower than the 35 per cent hike employees got in the Sixth Pay Commission.
17. 7th Pay Commission report has to be implemented from January 1, 2016.
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