1. 7th Pay Commission on pay and pension: Pensioners to gain the most at 23.63%

7th Pay Commission on pay and pension: Pensioners to gain the most at 23.63%

7th Pay Commission on pay and pension: Once the recommendations of the 7th Pay Commission are implemented, the biggest gainers will be pensioners.

By: | New Delhi | Updated: December 8, 2015 9:08 AM
7th pay commission, 7th pay commission pay scale, 7th pay commission calculator, 7th pay commission calculator for pensioners, 7th pay commission pensions, 7th pay commission latest news

7th Pay Commission on pay and pension: Going by the numbers, pension payments could well be the next time-bomb. Based on the 7th Pay Commission data, already pension payments account for a third of the government’s wage bill. (Express Photo by Partha Paul)

7th Pay Commission on pay and pension: Once the recommendations of the 7th Pay Commission are implemented, the biggest gainers will be pensioners. While the 7th Pay Commission pay scale increase of serving employees is 16%, pensioners will see a 23.63% rise. However, the big gain per se is in allowances, which rise by as much as 63%. Here we will elaborate on the 7th Pay Commission pension recommendations:

Going by the numbers, pension payments could well be the next time-bomb. Based on the 7th Pay Commission data, already pension payments account for a third of the government’s wage bill. That is going to rise sharply over the next 10 years. It is driven by the fact that 9.48 lakh employees accounting for 29% of the 30.32 lakh employees on the rolls now are in the 50-60-year band. By this time in 10 years, that means the government will need to pay for an additional million pensioners. So, the pension bill will continue to rise – with better health, most people live almost 20 years after retirement.

The Urban Development Ministry will see the sharpest fall (61.3%) followed by the Department of Posts (41.6%). However, the Indian Railways will account for half of the retirees (4.94 lakh). Despite the 37.5% fall in employees, the Indian Railways will still have 9.22 lakh employees if no new ones are hired.

This is also due to the fact that there has been no real move to reduce the government employee base over the years. While there are 33 lakh employees now it was 32.74 lakh in 2006 and 32.31 lakh in 2010. The only relief from the pension bomb will come when those employed after 2004 come to retirement age. These people are covered under the National Pension Scheme where the pensions they receive will depend on the payout they make while being employed. However, these employees will reach the retirement age a good 30 years from now. Check out 7th Pay Commission on pay and pension quick calculator below:

  Employees (in lakh) In 50-60- yr group % share
Railways 13.16 4.94 37.54%
MHA 9.8 0.68 6.94%
Defence (civil) 3.98 1.51 37.94%
Posts 1.9 0.79 41.58%
Urban devp 0.31 0.19 61.29%
Atomic energy 0.32 0.11 34.38%
Health 0.21 0.07 33.33%
Accts & audit 0.48 0.16 33.33%
Revenue 0.96 0.33 34.38%
Others 1.86 0.7 37.63%
Total 32.98 9.48 28.74%
  1. S
    Suvalaxmi
    Aug 1, 2017 at 3:36 pm
    I am a retaired havildar. My ry is 21800. What is my increse ry after 7 th pay
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      P. R Sharma
      Jul 29, 2017 at 6:02 pm
      P R Sharma , Retrd , Railway Employee Sir, my basic pay was 6900 at the time of retirement in 2005(30/5/2005) At present I am getting total Rs. 14700/-only. Please help me , how much I should get as per implementation of 7th Pay commission(for Railways retired employees).?? My total service was counted 25 years and 8 months. hope a reply . Thanking you
      Reply
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        Charanjit singh
        Jun 23, 2017 at 9:44 pm
        I ret on 31-3-2004 , My basic pay Rs.12600/- Gat painsion 3533 2354 1-1-2006. Rs.13306 /- My 7thpay commisio Gating Rs.33211/- June 2017 Help me my grad pay,basic pay ect. Sand detls
        Reply
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          Ibrahim. K.
          Feb 2, 2017 at 6:17 pm
          Pre 2006 Pensioners are not gettig justice. They are getting the minimum pension only as per the minimum pension fitment chart without considering their length of service !Concerned P. A. O not follwing the court direction.
          Reply
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            Ibrahim. K.
            Feb 2, 2017 at 6:01 pm
            Sir, my basic pension as on 31/12/2005 Asper pro rata dedection was Rs. 3546(D. P. Merged) I was getting asper the 6 C. P. C revision Rs. 5344. Now as per the full pension O. M. My full pension as on 31. 12. 2005 is Rs. 4875. including D. P. As per the minimum pension fitment chart for Rs. 4875 including D. P I should get Rs. 7345. W. E. F 1. 1. 2006. But Iam getting Rs. 5585 only. Reresentation hsa given to the P. A. O. Central water commission for the incorrect revision of pension but P. AO. replied the revision is correct and case is settled as it is! The Govt. Is areed to to give full pension to all pre 2006 Pensioners who has completed20 Yrs and more service ad per supreme cort direction. Then why the P. A. O is not giving full pension. This was only acheating the poor old aged pensioners!We are inthe end of the life. When we will get justice? The concerned officials are not following the court order. Then who will give help to the poor aged pensioners ?
            Reply
            1. Krishna Pani
              Jul 5, 2016 at 1:35 am
              For postal pensioners the enhancement of seventh pay commission is seemed very poor.No justification has don for postal pensioners.It is to be reconsidered for more betterment immediately. Chakrapani CA, Retd. Postmaster, Kurnool city.Ap.
              Reply
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                vidya parkash
                Jun 29, 2016 at 7:32 am
                i mean after the 7th pay commission's recommendation
                Reply
                1. V
                  vidya parkash
                  Jun 29, 2016 at 7:26 am
                  total pension is 30693/-
                  Reply
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                    vidya parkash
                    Jun 29, 2016 at 7:31 am
                    what will be my total pension if it is 30693/ at present
                    Reply
                    1. S
                      sk kutubuddin
                      Oct 9, 2016 at 5:10 am
                      My basic 9500 .gd pay 2400 &my Ta 800..Sir I want to know 7th cpc my gross ry. Please tell me.
                      Reply
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                        P.k.sinha
                        Dec 8, 2015 at 11:24 am
                        A retired citizen like me don't have much to say except that senior citizens deserve a better deal from all quarters of the society.
                        Reply
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                          Dr. A.
                          Dec 9, 2015 at 12:20 pm
                          Suppose, the basic pension as on 31-12-2015 of Mr. X is Rs.4000/- As on 01-12-2016, total pension of Mr. X would be Rs.8960 (Considering 124% DA as on 01-01-2016) After fixation of pension as per 7th CPC, basic pension would be Rs.10280/- (Rs.4000/- X 2.57) Then total increase = Rs.10280 – Rs.8960 = Rs.1320/- (i.e. 14.73% increase)
                          Reply
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                            AKHILESH KUMAR
                            Dec 9, 2015 at 9:57 am
                            i was in service since 1971. when my ry was fixed in 2006, i got 5 increments, after that i retired in 2008, so i got 2 more increments. my question is that i will get 7 increments in the pension or 2 increments only?
                            Reply
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                              D K
                              Dec 8, 2015 at 2:23 am
                              MACP date should be from 1.1.2006 in place of 1.9.2008.
                              Reply
                              1. D
                                DScott
                                Dec 8, 2015 at 9:26 pm
                                Well, if you ask me, the most critical part of preparing for retirement is just having a plan. Whether you use a spreadsheet or a tool like OnTrajectory or some other website -- you have to get everything out in front of you so you can make smarter decisions. Once you do that, then implementing your disciplined retirement strategy becomes critical.
                                Reply
                                1. D
                                  DScott
                                  Dec 8, 2015 at 9:27 pm
                                  Well, if you ask me, the most critical part of preparing for retirement is just having a plan. Whether you use a spreadsheet or a tool like OnTrajectory or some other website -- you have to get everything out in front of you so you can make smarter decisions. Once you do that, then implementing your disciplined retirement strategy becomes critical.
                                  Reply
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                                    T.A.Padmanaban
                                    Dec 11, 2015 at 12:38 am
                                    Very good analytical study worth reading
                                    Reply
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                                      Saifuddin
                                      Dec 9, 2015 at 2:04 am
                                      Sir, I am central Govt civil pensioner. I would be getting Rs 29970 on 1-1-2016 based on my basic pension of Rs13320 and based on DA at 125%. If the 7th pay commission report is implemented on 1-1-2016 I would get Rs 34233 an increase of Rs4263 ie,14.22% increase. As I have earned one increment only option 1 is not profitable to me. This may be the case of many pensioners. So the increase of 23.63% percent is not available practically. So the article is not in accordance with the fact.
                                      Reply
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