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7th Pay Commission decoded: Know all about salary increment, past pay commissions


New Delhi, Dec 3: Seventh Pay Commission last month submitted its report to Finance Minister Arun Jaitley.

Read more: Seventh Pay Commission: Centre ready to implement 'salary hike' recommendations

The Central Government employees must be curious to know what all are in the store for them in the seventh pay commission's recommendations.

Know all about 7th Pay Commission

Seventh pay commission

  • It was formed by previous UPA Government. The commission, headed by Justice A K Mathur was formed in February 2014.
  • The other members of the commission are Vivek Rae, a retired IAS officer of 1978 batch, and Rathin Roy, an economist. Meena Agarwal is Secretary of the Commission.
  • The committee's recommendations are scheduled to take effect from 1 January, 2016.
  • The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications.
  • Nearly 48 lakh central government employees and 55 lakh pensioners will be befitted by the pay commission.

Salary increment

  • 7th Pay panel suggests 23.55% hike in pay and allowances of govt employees.
  • Pay will go up by 16%; increase in allowances will be 63%; increase in pension will be 24%.
  • Recommendations will come into force from January 1, 2016.
  • Minimum basic pay for central govt staff recommended at Rs 18,000; maximum pay Rs 2.25 lakh per month: Pay Commission.
  • Pay Commission recommends 3% annual increment and 24% hike in pension for central government staffers.

Financial burden

  • Seventh pay commission will definitely bring a toll on the exchequer
  • The reason being Government has to manage OROP's expenditures too.
  • FY17 impact seen at Rs 1.02 lakh crore from implementation of the 7th Pay Commission.
  • Total impact from implementation of 7th Pay Commission is Rs 1.02 lakh cr; including Rs 28,000 cr on Railway Budget: FM.
  • Implementation of 7th Pay Commission to impact fiscal deficit by 0.65%: FM.

    Past pay commissions and the minimum basic salary

    • First pay commission came in year 1946 and the basic salary at that time was decided to be of Rs 35
    • Second pay commission came in year 1959 and basic salary was of Rs 80
    • In 1973, third pay commission came into effect which decided the basic salary of Rs 185
    • Fourth pay commission came in year 1986 which recommend basic salary of Rs 750
    • In year 1996, fifth pay commission came, recommending basic salary of Rs 2550
    • Sixth pay commission came into effect in year 2006. UPA Government at that time fixed minimum basic salary of Rs 6660

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