7th Pay Commission: How 5200-20200 pay band revised income works

This benefited 55 lakh pre-2016 civil and defence pensioners and family pensioners.

The Union Government accepted the recommendations of the 7th Pay Commission the minimum wages of a large number of central government employees increased from Rs 7,000 per month to Rs 18,000 per month.

Central government employees under the 5,200-20,200 pay band has been divided into five categories from Grade 1800 to 2800. This has further been divided into 40 levels.
The Defence Pay Matrix, which was earlier divided into 24 stages is now extended to 40 stages similar to the Civil Pay Matrix. It may be recalled that this month the Union Cabinet headed by Prime Minister Narendra Modi had approved the modifications under the 7th Pay Commission.

This benefited 55 lakh pre-2016 civil and defence pensioners and family pensioners. The pension bill of the Central Government employees is likely to be Rs 1,76,071 crore.

On 29th June 2016, while approving the implementation of the pay panel's recommendations, the Cabinet had also approved the changed method of pension revision recommended by the 7th Pay Commission for pre-2016 pensioners.

24 stages

The Defence Pay Matrix, which was earlier divided into 24 stages is now extended to 40 stages similar to the Civil Pay Matrix. The Union Cabinet, headed by Prime Minister Narendra Modi, gave the nod for the modifications under the 7th Pay Commission.

55 lakh will benefit

This unanimous decision will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners. This will come into effect from January 1, 2016. A rough estimate suggests that the pension bill alone is likely to affect the government exchequer by Rs 1,76,071 crore.

Pension revision

In June 2016 the Union Cabinet while approving the implementation of the 7th Pay Commission recommendations also approved the changed method of pension revision recommended by the Central Pay Commission for pre-2016 pensioners.

One more week

The central government employees have to wait for one more week to receive any update on the revised allowance structure as recommended by the 7th Pay Commission. Last month, the Committee on Allowance headed by Finance Secretary Ashok Lavasa submitted its final report to Finance Minister Arun Jaitley which now examined by the Empowered Committee of Secretaries (ECoS) which is expected to take a final call next week after presenting their opinion in front of the Union Cabinet.

When will the frustration end?

On the other side, a large number of Central Government employees say that they are frustrated with the wait. The 7th Pay Commission was constituted in February 2014 to review the principles and structure of emoluments of all central government civilian employees, including defence forces.

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