Top 7 Facts About the 7th Pay Commission for Central Government Employees

Commission

The 7th Pay Commission was announced by former Finance Minister of India, P. Chidambaram on the 25th of September, 2013. It was supposed to be rolled out in January 2016, as approved by the then Prime Minister of India, Dr Manmohan Singh.

The Pay Commission reviews and recommends the pay structure of central government employees. These revisions are made in tandem with the current and future economic liabilities and pay parity with other employment sectors.

The 7th Pay Commission is yet to be realised, pending further requests of revision from multiple sections of the central government employees. The board is currently headed by Justice AK Mathur, who submitted a revised report in 2016.
It is yet to come into effect, but there are some revisions which can be concluded with concrete facts and data.

Top 7 facts about the 7th Pay Commission

1. Minimum and Maximum pay

The minimum salary will increase from Rs. 7,000 to Rs. 18,000 per month. A new Class I Officer will generate a minimum salary of Rs. 56,100. These minimum salaries are on-entry actuals.

The maximum pay depends on the designation and grading. Maximum packages include those for Apex Scale government employees amounting to Rs. 2.25 Lakh per month and Rs. 2.5 per month for Cabinet Sec. and similar grade employees.

2. Fitment factor

Fitment factor is intrinsic to this 7th Commission. It is a multiplier over the 6th Pay Commission pay-scale recommendations, to be implemented in this yet-to-be-realised 7th. The current suggested fitment factor stands at 2.58, i.e. salaries as per the 6th commission will be multiplied 2.58 times in general across the whole employee spectrum for this forthcoming pay upgrade.

Fitment factor may be additionally subject to revisions before a final roll out with certain employee sectors pushing for a fitment factor above

3. CGEGIS

The Central Government Employees Group Insurance Scheme will see a multi-fold increase if these recommendations are comprehensively put into effect. Implementation of revisions will be as per employee gradation or level.

For instance, the CGEGIS currently comes with a monthly deduction of Rs. 30 assuring an insurance amount of Rs. 30,000. The 7th Pay Commission may increase these standards with a monthly deduction of Rs. 1500 and a cumulative insurance amount of Rs. 50,000.

4. Advances

There were multiple formats of grantable advances including Personal Computer Advance and House Building Advance. However, the upcoming Pay Commission will only include the above advances, discontinuing all other non-interest formats. There will be a notable increase in the maximum sum towards House Building Advance, up from Rs. 7 Lakh to Rs. 25 Lakh.

5. DA

DA or Dearness Allowance affects the whole amount of central government employees along with 55 Lakh pensioners plus staff. This upcoming pay commission will come with a 2% hike on DA, a welcome increase from 5% to 7% overall.

6. Modified Assured Career Progression (MACP)

The government aims to enhance the overall work output and productivity of its employees with a sound career progression plan. An employee’s individual performance will ascertain his/her MACP.

The previous set of performance parameters will also see alterations, including a change in the topmost performance bracket. Furthermore, promotions and annual increments will not apply to employees with a below-par performance graph.

7. Gratuity

The 7th Pay Commission can come with an increase in the total sum of gratuity, up from Rs. 10 Lakh to Rs. 20 Lakh. Further recommendations include raising the gratuity by 25% if and when DA rises by 50%.

These were the top 7 facts you need to know about the 7th Pay Commission. These will look to come into effect by the middle of 2019 as per the current hiatus. Although, considering the previous unforeseen hurdles, there may be delays on the horizon.