1. Data Drive: 7th Pay panel bonanza

Data Drive: 7th Pay panel bonanza

The Seventh Pay Commission headed by Justice Ashok Kumar Mathur has recommended a 23.55% increase in pay and pension benefits to 4.7 million government employees and 5.2 million retired employees.

By: | Published: November 21, 2015 12:13 AM
The Seventh Pay Commission headed by Justice Ashok Kumar Mathur has recommended a 23.55% increase in pay and pension benefits to 4.7 million government employees and 5.2 million retired employees.

The Seventh Pay Commission headed by Justice Ashok Kumar Mathur has recommended a 23.55% increase in pay and pension benefits to 4.7 million government employees and 5.2 million retired employees.

The Seventh Pay Commission headed by Justice Ashok Kumar Mathur has recommended a 23.55% increase in pay and pension benefits to 4.7 million government employees and 5.2 million retired employees. That means an additional payment of Rs 1.02 lakh crore of which the railways accounts for Rs 28,450 crore. The lowest monthly salary has been hiked from the earlier Rs 7,000 to Rs 18,000 while a cabinet secretary will now get Rs 2.5 lakh a month. The earlier grade pay has given way to a new pay matrix, where the status of the employee will be determined by the level in the pay matrix. All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. It comes into effect from 1 January 2016.

An interesting facet is by the time the next pay commission is constituted 10 years from now, around 29% of today’s government employees will retire. The railways and the department of posts would see the largest proportion of employees retiring.

It’s time for government employees to celebrate. The increased remuneration should see increased spending for consumer durables over the next few months.

The changing dynamics

All figures in Rs, crore

salary-graph

How monthly salaries rose over the years

All figures in Rs

salary-graph-1

The retiring brigade

Over a quarter of government employees will retire over the next 10 years

salary-graph-2

salary-graph-3

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