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

In this Table Pay Commission Details Are Shown
Pay CommissionEstablishedImplementedImplementedFinancial ImpactDetails
FirstJanuary 1946May 1947Srinivasa VaradachariarDuring Interim government
SecondAugust 19571959Jagannath Das₹ 39.6 croreRecruiting minimum qualification persons to ensure efficient functioning of the system
ThirdApril 1970March 1973Raghubir Dayal₹ 144 croreIntroduced 3 concepts for pay structure: inclusiveness, comprehensibility & Adequacy
FourthJune 1983March 1987P N Singhal₹ 1282 croreIntroduce Rank Pay concept for armed forces officer
FifthApril 1994May 1994Justice S. Ratnavel Pandian₹ 17,000 croreScramble in salary of about 3.3 million central government employees
SixthJuly 2006April 2008Justice B. N. Srikrishna₹ 20,000 croretotal of 5.5 million government employees benefited
SeventhSeptember 2013January 2016Justice Ashok Kumar Mathur₹ 1,02, 100 crore23.55 % 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 ₹ 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?

Image is Expect

Government՚s Burden

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