Highlights of 7th Pay Commission recommendations

November 20, 2015

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]T[/dropcap]he 7th Pay Commission on Thursday recommended a 16-percent salary hike for government servants with an estimated 47 lakh serving central government employees and 52 lakh pensioners expected to benefit from the recommendations. Following are some of the highlights:

. A 16-percent salary hike recommended

. A 24-percent hike in pension, besides a minimum pay of Rs.18,000 [$272] per month for all entry-level employees

. Rs.2.5 lakh [$3777.71] for the senior most serving officer, the cabinet secretary.

. Increase in pay will be 16 percent, increase in allowances will be 63 percent

. Annual increment of 3 percent recommended

. An estimated 47 lakh serving central government employees and 52 lakh pensioners will be impacted

. Proposals will entail an outflow of Rs.102,100 crore [$15443.956 million] from the exchequer during the next fiscal

. One rank one pension proposal recommended for all employees, including the defence personnel, retiring before January 1 next year

. Rate of house rent allowance be revised to 27 percent, 18 percent and 9 percent when dearness allowance crosses 50 percent, and to 30 percent, 20 percent and 10 percent when it crosses 100 percent

. House building advance ceiling proposed at Rs.25 lakh [$37773.37] against Rs.7.5 lakh [11333.38].

. Health insurance scheme for central government employees and pensioners h

. Ceiling of gratuity recommended at a higher rate of Rs.20 lakh [$30221.90] , against Rs.10 lakh [$15108.76].

. For defence personnel, against the existing pay of Rs.6,000 [$90.65] per month for service officers, the proposal is for Rs.15,500 [$234.18].

. Performance-related pay for all categories of central government employees

Note:
1. The conversion rate used in this article is 1 US Dollar = 66.11 Rupees.
2. Some of the content is used from IANS