15 Things You Must Know About The 7th Pay Commission

Following are the highlights of the recommendations made by the 7th Central Pay Commission, headed by Justice A K Mathur, which submitted its report to Finance Minister Arun Jaitley today:

1. 23.55 per cent increase in pay and allowances recommended.
2. Recommendations to be implemented from January 1, 2016.
3. Minimum pay fixed at Rs 18,000 per month; maximum pay at Rs 2.25 lakh.
4. The rate of annual increment retained at 3per cent.
5. 24 percent hike in pensions.
6. One Rank One Pension proposed for civilian government employees on line of OROP for armed forces.
7. 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.
8. Cabinet Secretary to get Rs 2.5 lakh as against Rs 90,000 per month pay band currently.
9. 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.
10. 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 percent.
11. Military Service Pay (MSP), which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only.
12. 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.
13. Short service commissioned officers will be allowed to exit the armed forces at any point in time between 7 to 10 years of service.
14. Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing allowances or in newly proposed allowances.
15. Recommendations will impact 47 lakh serving govt employees, 52 lakh pensioners, including defence personnel.