7th Pay Commission: Here are the modifications on the cards

Earlier the government had decided to modify the recommendations of the pay panel relating to the method of revision of pre-2016 pensioners.

There are certain modifications on the anvil where the 7th Pay Commission recommendations are concerned. The Union Cabinet had earlier approved two important recommendations regarding the Defence Forces.

Earlier the government had decided to modify the recommendations of the pay panel relating to the method of revision of pre-2016 pensioners. It also decided that the earlier system of disbursing disability pension would continue.

Revision

The Cabinet has accepted the recommendations of the Committee on revision of pension based on the information contained in the PPO issued to all pensioners. This according to the government.

In order to provide the more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested a revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner.

Notional pay

The committee felt that the revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases. The modified formulation is beneficial to more pensioners when compared to the first one as per the 7th Pay Commission.

What are the implications?

This would entail an added benefit to pensioners and an addition expenditure of Rs.5031 crore for 2016-17 over and above the expenditure already incurred in the revision of pension as per the second formulation based on fitment factor. It will also benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.

Cabinet meeting

At a recent meeting of the Union Cabinet, Defence Minister Arun Jaitley had also assured that the government was addressing the demand of extending pay matrix from 24 years to 40 years and carrying out rationalisation of pay Lt Colonels and Colonels.

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