The Seventh Pay Commission headed by Justice A K Mathur submitted its report to Finance Minister Arun Jaitley on Thursday and recommended a 16 per cent hike in the pay of 50 lakh central government employees.
- Minimum pay will be Rs. 18,000/-; maximum pay at Rs 2.25 lakh
- Pay Bands and Grade Pay has been dispensed
- Pay matrix with distinct Pay Levels to replace Pay Bands and Grade Pay
- To get the new pay Basic Pay, you have to multiply the total of pay in Pay Band + Gade pay with the factor of (2.57/2.67/2.72)
- HRA will be revised to 24 percent, 16 percent and 6 percent
- Transport Allowance hiked by a factor of 2.25
- One Rank One Pension proposed for civilian government employees on line of OROP for armed forces
- Children Education Allowance and Hostel Subsidy hiked by a factor of 1.5
- Only 80% salary during the second year of the Child Care Leave
- Recommends health insurance scheme for Central Government employees and pensioners
- Ceiling of gratuity enhanced from Rs 10 lakh to Rs 20 lakh; ceiling on gratuity to be raised by 25 per cent whenever DA rises by 50 per cent
- MSP for service officers more than doubled to Rs 15,500 per month from Rs 6,000 currently; for nursing officers to Rs 10,800 from Rs 4,200; for JCO/ORs to Rs 5,200 from Rs 2,000 and for non-combatants to Rs 3,600 from Rs 1,000
- Short service commissioned officers will be allowed to exit the armed forces at any point in time between 7 to 10 years of service
- Financial impact of implementing recommendations will be Rs 1.02 lakh crore – Rs 73,650 crore to be borne by Central Budget and Rs 28,450 crore by Railway Budget.
More updates to follow