Union Government Issues Notification for Implementation of 7th Pay Commission

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For the implementation of 7th Pay Commission, Union Government has issued notification. It was issued as per the Cabinet approval in June 2016.4. 8 million central government employees and 5.2 million pensioners will get the increased payout from their August 2016 salaries.

Image shows the 7<sup>th</sup> Pay Commission

Image shows the 7th Pay Commission

showing image of 7th Pay Commission

  • Further, Union Government has given CBSE chief Rajesh Kumar Chaturvedi an additional charge of Chief of the implementation cell of the Seventh Central Pay Commission.

Key Features:

  • 7th Pay Commission hike will result in increase in salaries of central government employees in the range of 7 thousand rupees to 18 thousand rupees per month.
  • Addition factor of 2.57 will also apply for pay revision of all employees and the rate of annual increment has been retained at 3%.
  • There will be two dates for grant of increment that is on January 1 and July 1 each year – instead of the existing July 1 only.
  • Workers will be entitled to only one annual increment on either of these two dates depending on the date of appointment, development, or grant of financial upgradation.
  • In 2016 - 17, It is estimated that the total burden on the exchequer on account of the 7th Pay Commission recommendation will be 1.02 lakh crore rupees.
  • There will be an additional impact of 12, 133 crore rupees on debts and of salary and pension for two months.

Background:

  • 7th Pay Commission headed by Justice AK Mathur had recommended 14.27 per cent hike in basic pay at junior levels in November 2015.
  • Commission was tasked with reviewing and proposing changes to the pay of around 1 crore individuals.
  • These recommendations will apply to 33 lakh central government employees, in addition to 15 lakh armed forces personnel and 52 lakh pensioners. Pay, Allowances and Pension of central government workers.

- Published/Last Modified on: July 27, 2016