7th Pay Commission YouTube Lecture Handouts

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7th Pay Commission YouTube Lecture Handouts

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Chairman - Justice Shri Ashok Kumar Mathur

Member - Shri Vivek Rae

Member - Dr. Rathin Roy

Secretary - Smt. Meena Agarwal

In this Table Pay Commission Details Are Shown
In this Table Pay Commission details are shown

Pay Commission




Financial Impact



January 1946

May 1947

Srinivasa Varadachariar

During Interim government


August 1957


Jagannath Das

₹ 39.6 crore

Recruiting minimum qualification persons to ensure efficient functioning of the system


April 1970

March 1973

Raghubir Dayal

₹ 144 crore

Introduced 3 concepts for pay structure: inclusiveness, comprehensibility & Adequacy


June 1983

March 1987

P N Singhal

₹ 1282 crore

Introduce Rank Pay concept for armed forces officer


April 1994

May 1994

Justice S. Ratnavel Pandian

₹ 17,000 crore

Scramble in salary of about 3.3 million central government employees


July 2006

April 2008

Justice B.N.Srikrishna

₹ 20,000 crore

total of 5.5 million government employees benefited


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


  • Fitment Factor = 2.57 across all pay grades

  • Yearly increment rate same as 3% before

  • House Building Advance now Rs 25 lakh from Rs 7.5 Lakhs

  • Increase Gratuity to Rs. 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?

Image is Expect

Image is Expect

Government’S Burden

Government’s Burden image

Government’S Burden Image

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

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