7th Pay Commission report: Key takeaways you must read

By: | Updated: June 29, 2016 6:26 PM

The Narendra Modi government is likely to approve higher increase in basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 1 crore government employees and pensioners. 5 facts to know ahead of the Cabinet meet today:

7th pay commission, 7th pay commission latest news today, 7th pay commission latest news, 7th pay commission latest, 7th pay commission report, 7th pay commission pension, 7th pay commission implementation, seventh pay commission news, seventh pay commission latest news,The government had in January set up the high-powered panel to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

The Narendra Modi government is likely to approve higher increase in basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 1 crore government employees and pensioners. The Seventh Pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008. After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent. 5 facts to know ahead of the Cabinet meet today:

1. “Considering the tight fiscal position this year, the government may improve upon the Pay Commission recommendation for basic pay to 18 per cent or at best 20 per cent,” a senior official said.

2. The 7th Pay Commission report will be effective from January 1, he said, adding that the Cabinet will decide if the arrears for the six months have to be paid in one go or in installments. A secretaries’ panel, headed Cabinet Secretary P K Sinha, has already vetted the 7th Pay Commission recommendation and its report is being translated into a note for Cabinet. “It in most likelihood will come up before the Cabinet today,” the official said.

Also read: 7th Pay Commission recommendations approved by Cabinet; big cheer for government employees

3. The government had in January set up the high-powered panel to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners. The secretaries’ panel may have recommended raising minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.

4. The Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP.

Check out the 7th Pay commission table:

2016-17 (Without VII CPC). 2016-17 (With VII CPC). Financial Impact Percentage Increase
1. Pay 244300 283400 39100 16
2. Allowances
HRA 12400 29600 17200 138.71
TPTA 9900 9900 0 0
Other Allowances 24300 36400 12100 49.79
3. Pension 142600 176300 33700 23.63
TOTAL: 433500 535600 102100 23.55
All figures in Rs except for percentage increase

5. The entry level pay has been recommended to be raised to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.

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