7th Pay Commission recommendations have been a much-discussed issue, as state and central government employees get affected when government makes any change in salary structure. 7th Pay Commission too has made many changes in salary structure. With the implementation of the 7th CPC recommendations, the government has made changes in Pay Matrix, Grade Pay, Dearness Allowance, annual increment, medical insurance, pension and many other things. Here are the important points of the 7th CPC that government employees must know:
7th Pay Commission recommended government employees’ minimum pay: For entry-level government employees, minimum salary increased from Rs 7,000 to Rs 18,000 per month.
7th Pay Commission recommended government employees maximum pay: For Apex Scale government employees, 7th CPC recommended to increase the maximum pay to Rs.2.25 lakhs per month, while for Cabinet Secretary and equivalant level employees’ maximum salary is Rs 2.5 lakhs per month.
7th Pay Commission slary structure: 7th CPC in its recommendations has included all the existing levels in its new pay structure.
7th Pay Commission new Pay Matrix: 7th CPC has recommended a new pay matrix. 7th CPC had recommended to do away with Grade Pay. Status of a government employees status is decided by the level in the new Pay Matrix.
7th Pay Commission Fitment factor: A uniform Fitment Factor of 2.57 for all employees has been recommended by the 7th CPC to eliminate discrimination in the system. According to reports, Fitment factor may go up to 3.00 times from earlier 2.57 times.
7th Pay Commission Dearness Allowance: The central government employees’ Dearness Allowance (DA) has increased 2 percent recently keeping in mind the pace of inflation. Nearly 50 employees and 55 lakh pensioners and staffers were benefited from the DA hike.
7th Pay Commission annual increment: The 7th CPC has recommended an annual increment of 3 percent per annum.
7th Pay Commission Military Service pay: According to the the 7th CPC recommendations, Defence Personnel only will get Military Service pay or MSP. Defence personnel of all ranks including Brigadiers and equivalant level officers are eligible forMSP .
7th Pay Commission allowances: Total 196 allowances which are currently present. The government has abolished 51 allowances, and retained 37 allowances.
7th Pay Commission HRA: 7th CPC recommended House Rent Allowance be increased by 24 percent and subsequent increase.
7th Pay Commission advances: Most of the non-interest bearing advances have abolished. However, House Building Advance has been increased from Rs.7.5 lakhs to Rs.25 lakhs.
7th Pay Commission Central Government Employees Group Insurance Scheme: There are some changes in the scheme.
7th Pay Commission Medical facilities: A Health Insurance Scheme with cashless medical benefit for Central Government employees and pensioners has been recommended by the 7th CPC.
7th Pay Commission Pension: The 7th CPC recommends a revised pension formulation for civil employees including CAPF and Defence Personnel who retire before January 1, 2016 to bring parity between existing pensioners and current retirees. According to policybazaar.com, new pension will be calculated by placing existing pensioners on the new Pay Matrix system and the pension amount will be arrived at by adding the number of increments a pensioner has earned in that level while in active service at the rate of 3 percent per annum. The new pension amount will be 50 percent of the amount arrived at. A multiple of 2.57 times the current basic pension be recieved by the pensioner.
7th Pay Commission Pension Gratuity: According to the 7th CPC recommendations, gratuity be hiked from the current level of Rs.10 lakh to Rs.20 lakh. A ceiling on gratuity may also be hiked by 25 percent when the DA rises by 50% percent.
7th Pay Commission Armed Forces Disability Pension: 7th CPC recommends to implement a slab-based system for disability element.
7th Pay Commission Work Related Illness and Injury Leave (WRIIL): Full pay and allowances to all employees if an employee is hospitalised due to WRIIL, 7th CPC recommended.