Highlights of the 7th Pay Commission
New Delhi,27 November: Seventh Pay Commission hiked salary of government employees and pensioners by 23.55% which will be implemented from January 1, 2016. All you need to know about the 7th Pay Commission recommendations.
1. . Recommendations will impact 47 lakh serving government employees, 52 lakh pensioners, including defence personnel.
2. Minimum pay for government employees has been fixed at Rs 18,000 per month.
3. 23.55% increase in pay and allowances recommended. Recommendations to be implemented from January 1, 2016.
4. Maximum pay for government employees has been fixed at Rs 2.25 lakh.
5. The rate of annual increment retained at 3%.
6. 24% hike in pensions recommended.
7. One Rank One Pension (OROP) has been proposed for civilian government employees on line of OROP for armed forces.
8. Ceiling for gratuity has been increased from Rs 20 lakh to Rs 20 lakh; ceiling on gratuity to be raised by 25% whenever Dearness Allowance rises by 50%.
9. Cabinet Secretary to get Rs 2.50 lakh as against Rs 90,000 per month pay band currently.
10. Financial impact of implementing recommendations will be Rs 1.02 lakh crore out of which Rs 73,650 crore will be borne by Central Budget and Rs 28,450 crore will be borne by Railway Budget.
11. Total impact of the Seventh Pay Commission’s recommendations will raise the ratio of expenditure on salary and wages to GDP by 0.65 percentage points to 0.7%.
12. Military Service Pay (MSP) which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only.
13. Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing allowances or in newly proposed allowances.
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