7th Pay Commission Update: Cross Your Finger For Ache Din!
Source: indianexpress | Image Courtesy: inquirer
The Seventh Pay Commission, headed by Justice A K Mathur submitted its report to Finance Minister Arun Jaitley on November 19, 2015. Pay commissions are convened intermittently to assess and restructure the salaries and pensions of government employees.
The recommendations made by the seventh commission are to be brought in effect from January 1, 2015. The highlight of the report was the suggestion of an increase of 23.55% in the salaries and pensions of all government employees. Of this, the increase in pay shall be by 16%, in allowances by 63%, along with a 24% increase in pension.
The minimum monthly salary is to be fixed at ₹ 18,000 and the highest pay is set at ₹ 2.5 lakh. The commission also suggested retention of an annual increment of 3%, although it has abolished the pay band and grade pay, in an attempt to maintain greater transparency. Another notable recommendation was the proposition of One Rank One Pension for civilian government employees.
The cumulative impact of the recommendations is estimated at ₹ 1.02 lakh crore. Also, monetary compensation in the form of the Military Service Pay will now be admissible only to defense force personnel. The report will be affecting 47 lakh serving employees, and 52 lakh pensioners.