7th Pay Commission Salary Calculator and Recommendation by the Justice Mathur Pay commission – The Seventh Pay Commission on salary hike for the Central Government employees by member of the pay commission have been submitted to Union finance minister Arun Jaitley recommending a 16% hike in basic pay of nearly 5 million central government employees.
The pay commission headed by justice AK Mathur has also recommended the hike in other perk and allowances including HRA etc that will result in an effective 23.51% increase in salaries of central government employees. The total increase, including the additional outgo on account of pensions, is estimated to be 23.55%.
The 7th pay commission recommendations are scheduled to take effect from January 1, 2016. This would benefit around 48 lakh central government employees and 55 lakh pensioners.
Pay Commission has also twisted the OROP demand by defence personnel by recommending One Rank One Pension (OROP) for civilian government employees also. The ceiling of gratuity has been proposed to be enhanced from Rs 10 lakh to Rs 20 lakh while it would be raised by 25 per cent whenever the DA rises by 50%.
The top ranked government official like Cabinet Secretary is proposed to get Rs 2.5 lakh as against being kept in the Rs 90,000 per month pay band currently.
This settlement is an eye opener for Banker’s Union who have fought for more than three year for 9% settlement. Hope they learn some lesson from these guys.
The Major recommendation of 7th Pay Commission are :
- Abashment of Grade Pay system in central government jobs
- 23.55 per cent increase in pay and allowances recommended
- Recommendations to be implemented from January 1, 2016
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Minimum pay fixed at Rs 18,000 per month; maximum pay at Rs 2.25 lakh
- The rate of annual increment retained at 3per cent
- Approx 24 per cent hike in pensions
- One Rank One Pension proposed for civilian government employees on line of OROP for armed forces
- 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
- Cabinet Secretary to get Rs 2.5 lakh as against Rs 90,000 per month pay band currently
- 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.
- Total impact of Commission’s recommendation to raise the ratio of expenditure on salary and wages to GDP by 0.65 percentage points to 0.7 per cent
- Military Service Pay (MSP), which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only
- 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
- Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing allowances or in newly proposed allowances.
- Recommendations will impact 47 lakh serving govt employees, 52 lakh pensioners, including defence personnel.
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