Seventh Pay Commission Hike Notified: 10 Things To Know

Seventh Pay Commission Hike Notified: 10 Things To Know

The Seventh Pay Commission hike will benefit 1 crore employees and pensioners

Highlights

  • Government employees will receive higher salaries likely from next month
  • The arrears shall be paid during the financial year 2016-2017
  • About 1 crore employees and pensioners will benefit from the pay hike
The Finance Ministry has notified the salary hike based on Seventh Pay Commission recommendations. This means that lakhs of government employees will receive higher salaries likely from next month. The notification is dated July 25, 2016.  About 1 crore employees and pensioners will benefit from the pay hike, effective from January 1, 2016. 

Here are the key highlights of the notification: 

1) According to the pay new structure, the existing basic pay as on December 31, 2015, shall be multiplied by a factor of 2.57.

2) The arrears shall be paid during the financial year 2016-2017.  

3) Entry-level pay will be raised to Rs 18,000 a month from the current Rs 7,000. The maximum pay has been fixed at Rs 2.5 lakh. 

4) The  Seventh Pay Commission's recommendations  on  allowances  (except  dearness  allowance) has been referred  to  a committee, which will submit  its  report  within  four  months. All allowances will continue to be paid at existing rates in existing pay structure. 

5) There shall be two dates for grant of increment January 1 and July 1 of every year, instead of existing date of July 1.

6) The  recommendations  of  the  Commission  for  increase  in  rates  of  monthly  contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) for various categories of employees  has  not  been  accepted.  The existing rates of monthly contribution shall continue.

7) The Finance Ministry will work out a customised group insurance scheme for central government employees.

8) The  recommendations  of  the  seventh pay commission  relating  to  interest  bearing  advances  as  well  as interest free advances have been accepted with some exceptions. 

9) Committees  will  be  set  up  by  Department  of  Personnel   to  examine individual,   post-specific and cadre-specific anomalies  arising   out   of   implementation   of   the recommendations of the Commission.

10) Non-performing central government employees will not get annual increment if their performance is not up to the mark.

(With inputs from agencies)