1. 7th Pay Commission recommendation to impact 47 lakh govt employees, 52 lakh pensioners

7th Pay Commission recommendation to impact 47 lakh govt employees, 52 lakh pensioners

7th Pay Commission report suggests minimum basic pay for central govt staff recommended at Rs 18,000; maximum pay Rs 2.25 lakh per month

By: | New Delhi | Updated: November 20, 2015 2:24 AM
7th pay commission report

Finance Minister Arun Jaitley receiving the report of 7th Pay Commission from its Chairman Justice A K Mathur in New Delhi on Thursday. (PTI)

In a big bonanza to central employees and pensioners, the seventh Pay Commission today recommended a 23.55 per cent increase in salary, allowances and pension along with a virtual one-rank-one-pension for civilians, involving an additional outgo of Rs 1.02 lakh crore a year.

A minimum pay of Rs 18,000 per month and a maximum of Rs 2.5 lakh per month has been recommended by the Commission, headed by Justice A K Mathur, that presented its 900-page report to Finance Minister Arun Jaitley here.

The recommendations, which are to be implemented from January 1, 2016, will benefit 47 lakh central government
employees and 52 lakh pensioners. The impact the recommendations will be Rs 1.02 lakh crore — Rs 73,650 cr on Central Budget and Rs 28,450 cr on Railway Budget.

Here are highlights of the 7th Pay Commission Report:

*23.55% hike in pay and allowances of govt employees

*Pay will go up by 16%; increase in allowances will be 63%; increase in pension will be 24%

*Minimum basic pay for central govt staff recommended at Rs 18,000; maximum pay Rs 2.25 lakh per month

*Pay Commission recommends 3% annual increment and 24% hike in pension for central government staffers

*FY17 impact seen at Rs 1.02 lakh crore from implementation of the 7th Pay Commission

*One Rank One Pension recommended for central govt staffers as well as armed forces

* 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

* Cabinet Secretary to get Rs 2.5 lakh as against Rs 90,000 per month pay band currently

* Military Service Pay (MSP), which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only

* 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

* Short service commissioned officers will be allowed to exit the armed forces at any point in time between 7 to 10 years of service

* Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing allowances or in newly proposed allowances.

Highlights of Arun Jaitley’s speech on 7th Pay Commission’s Report

*Recommendation will impact 47 lakh serving govt employees, 52 lakh pensioners, including defence personnel: Arun Jaitley

*Total impact from implementation of 7th Pay Commission is Rs 1.02 lakh cr; including Rs 28,000 cr on Railway Budget: Arun Jaitley

*An implementation Secretariat headed by Expenditure Secretary created to look at implementation of 7th Pay Commission: Arun Jaitley

*Implementation of 7th Pay Commission to impact fiscal deficit by 0.65%: Arun Jaitley

2016-17 (Without VII CPC) 2016-17 (With VII CPC) Financial Impact Percentage Increase
Other Allowances
All figures in Rs crore except for percentage increase


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  1. R
    Nov 22, 2015 at 11:04 am
    Today a pensioner's basic is Rs 100 say and his DA is Rs 125 , hence present pension is Rs 225. His new pension will be close to Rs 257. The increase is thus 257 /225 = 1.14 or 14% increase. Why the media is saying 24% increase for pensioners, when it is actually 14% only?
    1. V
      vinay kumar
      Nov 21, 2015 at 3:35 pm
      I am in agreement with Mr. Mahesh G. Ubhayakar. Is there anybody who can tell me the mathemtics as to how pension will be incresed by 24%, please??????????????????
      1. D
        Devendra Kumar
        Nov 20, 2015 at 2:15 pm
        Recommendations of 7th CPC s are not worth and much beneficial to central Govt. Employees.
        1. M
          Nov 20, 2015 at 12:36 pm
          I am Pensioner, hurt more by false news than by the quantum of raise. The Dearness Relief now is 119% and 7th PC has analysed it to be 125% as on 1.1.2016 which is equal to multiplication factor 2.25 of basic pension. 7th PC has raised this fitment to 2.57 which is only 14.2%. How is it that media release says 24% and gives wrong picture to the PUblic? Shameless, irresponsible reporting.
          1. Murthy Suppusamy
            Nov 20, 2015 at 9:27 am
            Govt employees are not productive. So 5-10% increase is ample. Next time, remove pay commission. Base the ry on merit only.
            1. R
              Rajesh Taneja
              Nov 19, 2015 at 9:02 pm
              7cpc recommends OROP.
              1. R
                Rajesh Taneja
                Nov 19, 2015 at 9:01 pm
                Well OROP RECOMMENDED. Revision on yearly or 5 yearly? What happens to notification. Govt will scrutinise and may take 5 months. MSP for jawans 6000 and offrs 15500. Min ry 18000 max 225000. Cab secy 250000. No grade pay
                1. R
                  Nov 19, 2015 at 11:11 pm
                  What about those in the private sector? All is paid through taxes but the imbalance is very glaring especially 'from cradle to grave' for some doing ordinary work as still poverty is climbing and civic services so dismal for the poor. Give hike but 27% is not being fair to the majority who work in the private sector and unless mandatory will never get 5% in many years that boggles the mind. Guess the government legislature, judiciary and executive with its bloated numbers believes in 'you scratch my back and I scratch your back' with no concern from where the money shall come except increase their income and let other citizens quarrel amongst themselves while the business folks make merry and banks just write off NPAs. Give increase in limit considering the poverty levels that shrouds the majority of the citizens. Education and management is knowing these facts and doing accordingly for future solid progress.
                  1. R
                    R. Sudhir
                    Nov 21, 2015 at 4:44 pm
                    A soldier heart bleeds when MSP which is right of the soldiers and who are supposed to get higher than any other person in defense, is being given to others who are not at risk at any stage of war. This recommendation needs to be reviewed and reversed.
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