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Cabinet approval om 7th CPC modifications : What we know till now


04 May, 2017 8:22p.m.

Days after Ashok Lavasa-led Committee on Allowances submitted its review report on Seventh Pay Commission's recommendations, the Narendra Modi-led cabinet approved modifications on pay and pensionary benefits on Wednesday.
A meeting of the Standing Committee of National Council (JCM) was also held on the same day in which the protest by government employees over abnormal delay in implementation of allowances was discussed.
Increase in minimum pay and fitment formula, revision of pension and grant of dearness relief to autonomous body pensioners was also discussed at the JCM (Joint Consultative Machinery) meeting which was chaired by Secretary, Department of Personnel.
The proposed move to close down DGS&D (Directorate General of Supplies and Disposal) was also taken up at the JCM meeting.

  1. On Wednesday, the Union cabinet approved modifications in the Seventh Pay Commission recommendations on pay and pensionary benefits.
  2. The benefits of proposed modifications will be available with effect from January 1, 2016--the date of implementation of the Seventh Pay Commission.
  3. With this, the annual bill of the Central government is likely to be Rs 1,76,071 crore. The two major decisions taken by Union cabinet were on revision of pension of pre-2016 pensioners and family pensioners; and disability pension for defence pensioners.
  4. For pre-2016 pensioners and family pensioners, the Cabinet approved the modifications relating to the method of revision of pension.
  5. This modified formulation will benefit more pensioners that the previously recommended formulation. More than 55 lakh pre-2016 civil and defence pensioners and family pensioners will benefit from this modification.
  6. The Union cabinet approved retention of percentage-based regime of disability pension implemented after the Sixth Pay Commission. The Seventh Pay Commission had recommended replacing percentage-based system with a slab-based system.
  7. The Lavasa Committee's recommendations on allowances has not yet been shared in public domain but reports suggest that the committee has taken a favourable stand on subjects like the house rent allowance (HRA).
  8. The benefit of the proposed modifications will be available with effect from January 1, 2016, the date of implementation of 7th CPC recommendations.
  9. The government has decided to continue with an earlier system of disbursing disability pension and not to go ahead with a new regime recommended by the seventh pay commission. The armed forces personnel were demanding status quo on the percentage-based regime for disability pension and were strongly opposed to the slab-based system conceived by the CPC.
  10. After a meeting of the Union Cabinet, defence minister Arun Jaitley also assured that the government was addressing the demand of extending pay matrix from 24 years to 40 years and carrying out rationalisation of pay Lt Colonels and Colonels

  11. Government employees' representatives are demanding arrears on allowances given the long delay in the implementation. It was speculated that the government will make an announcement before the start of this financial year.
  12. However, following the delayed submission of the review report by Ashok Lavasa, the wait for revised allowances continues. The Union cabinet had approved the recommendations of Seventh Pay Commission in June last year. The Seventh Pay Commission recommended a 14.27 per cent hike in basic pay, which was the lowest in 70 years.

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