7th Pay Commission YouTube Lecture Handouts
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7th Pay Commission YouTube Lecture Handouts
Chairman - Justice Shri Ashok Kumar Mathur
Member - Shri Vivek Rae
Member - Dr. Rathin Roy
Secretary - Smt. Meena Agarwal
Pay Commission | Established | Implemented | Implemented | Financial Impact | Details |
---|---|---|---|---|---|
First | January 1946 | May 1947 | Srinivasa Varadachariar | During Interim government | |
Second | August 1957 | 1959 | Jagannath Das | ₹ 39.6 crore | Recruiting minimum qualification persons to ensure efficient functioning of the system |
Third | April 1970 | March 1973 | Raghubir Dayal | ₹ 144 crore | Introduced 3 concepts for pay structure: inclusiveness, comprehensibility & Adequacy |
Fourth | June 1983 | March 1987 | P N Singhal | ₹ 1282 crore | Introduce Rank Pay concept for armed forces officer |
Fifth | April 1994 | May 1994 | Justice S. Ratnavel Pandian | ₹ 17,000 crore | Scramble in salary of about 3.3 million central government employees |
Sixth | July 2006 | April 2008 | Justice B. N. Srikrishna | ₹ 20,000 crore | total of 5.5 million government employees benefited |
Seventh | September 2013 | January 2016 | Justice Ashok Kumar Mathur | ₹ 1,02, 100 crore | 23.55% hike in pay and allowances |
Need for 7th Pay Commission
Affected People
- Recommended 14.27% hike in basic pay at junior levels, the lowest in 70 years.
- 6th PC it was 20% hike which the government doubled while implementing it in 2008.
- 7th PC recommended changes in the pay of:
- 33 lakh central government employees
- 14 lakh armed forces personnel
- 52 lakh pensioners
Highlights
- Fitment Factor = 2.57 across all pay grades
- Yearly increment rate same as 3% before
- House Building Advance now ₹ 25 lakh from ₹ 7.5 Lakhs
- Increase Gratuity to ₹ 25 Lakhs from 10 Lakhs
Gratuity is a collectable amount for an employee, paid as a gratitude by the organization for individual who has worked in an organization for a minimum of 5 years. Known as end of service benefits.
Based on average salary, DA and number of years worked
Dr. Wallace Akroyd
- First director of the Department of Nutrition at Food and Agricultural Organisation (FAO)
- In 1935, he was appointed director of the government՚s nutritional research center at Coonoor in Kerala, India.
- Laid the food requirement for Indian adult
- Need-Based Minimum Wage concept to compute pay at the minimum level
15th Indian Labour Conference (ILC) 1957 Norms
- Standard working class family to be taken as 3 consumption units for one earner, which is two adults and two children.
- Minimum food requirement to be taken as a balanced diet of 2,700 calories per day per consumption unit;
- Clothing requirement per capita consumption of 18 yards per annum, which gives 72 yards per annum for the average worker՚s family;
- For housing, the rent corresponding to the minimum area provided for under the government՚s industrial housing schemes should be taken
- Fuel, lighting and other items of expenditure should constitute 20 per cent of the total minimum wage.
What to Expect?
Government՚s Burden
Key Points!
- Fixation of Pay on Promotion
- Special pay system to be re-introduced
- Modified Assured Career Progression (MACP)
- Abolish 52 Allowances
- Risk and Hardship Allowance – 9 cell with RH-Max for Siachen
Key Points!
- Maternity Leave and Paternity Leave at Status quo.
- Hutting Allowance to be deleted – In case of plague – Vacate houses
- Rent free Accommodation to be deleted
- Abolish Furlough leave (for defense personnel՚s)
- Family HRA Allowance - Incentive for posting to NE region. Must be extended to Andaman, Nicobar and Lakshadweep also
Key Points!
- HRA should be 24% , 16% and 8% of the Basic Pay for Class X, Y and Z cities respectively.
- Rate of HRA will be revised to 27% , 18% and 9% when DA crosses 50 percent, and further to 30% , 20% and 10% when DA crosses 100% .
- Provide Compensatory City Allowance and Transport Allowance, Overtime allowance, Night Duty Allowance
- Hierarchical promotions to all employees in career
City Classification
- Before 6th PC, classification of cities was based on:
- Compensatory City Allowance (CCA) A-1, A, B-1 and B-2
- HRA A-1, A, B-1, B-2 and C
- Under 6th PC:
- A-1 X (Tier -1)
- A, B-1, B-2 Y (Tier -2)
- C & Unclassified Z (Tier -3)
- 2011, Pune & Ahmedabad upgraded to X from Y & 21 to Y from Z.
- Currently 8 - X Cities - Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Pune
✍ Manishika