The Pay Commission was settled up to recommend interchanges in the salary formation of central government workers. The 7th pay commission led by AK Mathur was to be executed in January of 2016.
The 7th pay commission delineation recommended a 23.55% hike in the pay and allotments across all sectors. Government employees anxiously waiting for the execution of the 7th pay commission to observe the respective pay trudges and advantages in stockpile for them.
Pay Commission is based in Delhi. Pay Commission is offered 18 months of time to capitulate its recommendations over a report from the date of its composition.
The commission might contemplate sending provisional reports on any of the circumstances as and when recommendations are finalized. The government of India can either gain reject of recommendations made by the Pay Commission. State governments generally embrace exhortations with certain moderations.
What is Pay Commission?
- What is Pay Commission?
- 7th Pay Commission
- Updates on 7th Pay Commission
- The 7th Pay Commission – Over 23 Lakh Pensioners to get a profit of up to Rs. 18,000
- How House Rent Allowance (HRA) Composition has Influenced Affectation – 7th Pay Commission
- New Advantage for Railway Staff Under the 7th Pay Commission
- Will Central Government Employees Obtain Revised Allotments from July 2018?
- Key High Points of the Seventh Pay Commission
- How to Calculate 7th Pay Commission
Pay Commission is an organizational system or mechanism appointed by the Government of India to examine, evaluate and recommend sensible and attainable changes to salary and its structures (includes pay, allocation, bonus, and other facilities/advantages in cash or kind) of Government workers of numerous department, influences, and services in the esteem of following given categorization of employees:
- Central Government employees, commercial and non-industrial
- Staff belongings to the All India Service
- Personnel of the Union Territory
- Officers and workers of the Indian Audit and Accounts Department
- Member of the regulatory bodies (eliminating the RBI) set up under the Acts of Parliament
- Officer and employee of the Supreme Court
- Personnel belonging to the Defence Forces
Every pay commission, in sequence to make its recommendation, scrutinize numerous features including the lucrative conditions of the country, financial expedients of the government, likely collision on finances of state Governments, contrast with the public sector, private sector and state government pay formation, best global practices and their elasticity and applicability to Indian conditions, etc.
Pay Commission is led by a Chairman and contains members who are senior officials from numerous departments.
To date since India’s Independence, seven pay commissions (7th being the newest one) have been settled up to analysis and endorse changes to consideration compositions of civil and denial personnel of Government. Pay Commissions are normally elevated every 10 years.
7th Pay Commission
The Seventh Pay Commission was erect by The Manmohan Singh-led UPA Government on 28 February 2014 under the captainship of Justice Ashok Kumar Mathur.
Other limbs of the 7th pay commission are Shri Vivek Rane (IAS), Dr. Rathin Roy (economist, Director NIPFP), and Smt Meena Agarwal (administrative specialist) as Secretary. 7th Pay Commission capitulated its report on 19 November 2015 and the exhortations were to take a consequence from 1 January 2016.
Updates on 7th Pay Commission
The 7th Pay Commission – Over 23 Lakh Pensioners to get a profit of up to Rs. 18,000
By exhortations from the seventh pay commission, the government has amended the pension limitations for both teaching and non-teaching employees of central and state universities.
This resolution by the government will profit a current strength of 25,000 pensioners of central universities, considered universities, and the University Grants Commission (UGC) -nourished universities.
A supplemental eight lakh teaching and 15 lakh non-teaching employees retired from state public and associate with universities – that wish to or have embraced the pay scales authorized for Central Universities will also profit from this decision.
How House Rent Allowance (HRA) Composition has Influenced Affectation – 7th Pay Commission
According to the research paper by RBI’s department on financial policy. The increase in in-house rental allocation for central government workers endorse by under the 7th central pay commission has influenced the Consumer Price Index (CPI) pretense by nearly 35 basis points at its summit.
Consumer Price Index (CPI) is a process that studies the burdened average of prices of a compass of consumer commodities and services, such as food, transportation, medical care, and many more.
It is calculated by taking into account price variants for each commodity in the prearranged range of commodities and taking a median of them.
New Advantage for Railway Staff Under the 7th Pay Commission
Leave Travel Concession (LTC) for the first time can be now assist by railway staff members. Government staff members and their consorts working in the Indian Railways are not authorized to LTC as the provision of “Free Pass” is obtainable to them.
Will Central Government Employees Obtain Revised Allotments from July 2018?
Central government employees are now profited by a 25 percent increase in primary pay but with a moderately let down HRA.
The Ashok Lavasa Committee had evaluated the exhortations made by the 7th Pay Commission, specifically concerning allocations, and submitted its discoveries to the finance minister.
Key High Points of the Seventh Pay Commission
- Minimal pay: Minimal pay at entry-level is expanded from Rs.7,000 to Rs.18,000 per month. For a newly engaged Class I Officer, the minimal salary is now Rs.56,100 per month.
- Highest pay: Highest pay the level of secretariat/analogous is increased to Rs.2,25,000 per month for Apex Scale and Rs.2,50,000 per month for Cabinet Secretary and other currencies at the same pay level
- New Composition: Present structure of pay straps and grade pay has been distributed with and a new pay matrix has been framed. Grade Pay has been comprehending in the pay matrix. The position of the worker, previously set on by grade pay, will now intend on by the level in the pay matrix.
- Fitment element: A fitment element of 2.57 is being presented to be appeal uniformly for all employees.
- Modified Assured Career Progression (MACP): Performance standards for MACP is set at ‘very good and also presented that no yearly augmentation to employees who do not meet the standard either for MACP or for a regular encouragement in the first 20 years of their services
- Cadre evaluation: Structured change in the procedure of Cadre Review for Group A officers advocated
- Allocation: The Commission has advocated terminating 52 allocations altogether. Another 36 allocations have been terminated as separate identifications, but comprehend either in an existing allocation or in newly presented allocation. It was endorsed to extant the House Rent Allowance (HRA) as there is an increase in the primary pay and further increase based on the change in DA
- Advance: Non-interest posture advance and other interest posture advances except the Personal computer advance and House Building Advance (HBA) is terminated and HBA vaulting amend to Rs.25 lakhs from Rs.7.5 lakhs
- Central Government Employee Group Insurance Scheme (CGEGIS): Charges of subscription and insurance analysis under CGEGIS
- Medical facilities: Initiation of a Health Insurance Scheme for Central Government employees and pensioners, covering postal pensioners under CGHS and consolidating of postal pharmacies with CGHS
- Pension: Amended pension articulation for civil members including Central Armed Police Forces (CAPF) employees and denial personnel retire before 1 January 2016
- New Pension System (NPS): Confirming to receiving many disservices relating to NPS, recommend a number of steps to upgrade the functioning of NPS and also the institution of a strong offense amends mechanism.
The government executed the exhortations of the 7th Pay Commission including those influencing the furnished forces with slight modifications on 5 September 2016.
For eg: expansion in the subscription to CGEGIS was not accepted, although, the cabinet has asked the ministry to work out a tailored group insurance strategy for Central Government Employees with lower premiums and higher risk coverage.
How to Calculate 7th Pay Commission
To calculate the salary in the new formation, you can use one of numerous 7th Pay Commission calculators which advocates that one can enumerate their entire salary/pay packages in the following method:
1: Enter the elementary pay along with your Pay band Grade pay
2: Choose your transport allocation, location with the percentage of your present house rent allowance (HRA)
3. Select the calculation button, this will give rise to a result of your emend salary structure in conformance with the 7th Pay Commission Recommendation
The 7th Pay Commission interchanges will come into consequence in August 2018. This will mark the period of the 7th Pay Commission coming into result. All emend salaries, remuneration, and allocations will take a consequence from the past months (July) salary that will be paid by August.
There is yet no lucidity on the exposure of employees’ liabilities that will be accomplished at a single go or if they will come as installment. All things considered to control an elemental of central government workers. The government from 2016 had trekked the salaries of these workers.
Taking into contemplation the growth rate of affectation, the employees believe that the salary plod was not considerable enough to meet higher living costs and in turn, appealed to the government to amend the salary composition under the 7th pay commission.
Government employees believe that assisting is on the path and soon.