Home / Politics / Policy /  7th Pay Commission: Central government employees to get salary hikes from August

New Delhi: The centre on Tuesday formally notified its acceptance of the Seventh Pay Commission recommendations, clearing the way for the payment of increased salaries and pensions to around 10 million employees and pensioners with effect from August. Arrears dating back to January 2016 are expected to be paid before 31 March 2017.

The government had set up a committee under the department of personnel and training to examine individual, post-specific and cadre-specific anomalies arising out of the implementation of the recommendations.

Employees’ unions deferred a strike they planned to start on 11 July to press demands for higher minimum pay after the government said a committee would study the anomalies suggest remedial measures.

Government employee unions demanded a minimum pay of 26,000; the commission had recommended 18,000. The commission recommended a 23.55% increase in overall emoluments for employees.

According to the commission’s recommendations, the minimum monthly pay has been fixed at 18,000 and the maximum at 2.5 lakh at the level of cabinet secretary, the country’s senior-most civil servant.

According to the commission’s report, the financial impact of the recommendations in 2016-17 will amount to 1.02 trillion. Of this, the increase in pay would account for 39,100 crore, increase in allowances for 29,300 crore and increase in pensions for 33,700 crore.

“The government has accepted the Commission’s recommendations on Minimum Pay, Fitment Factor, Index of Rationalisation, Pay Matrices and general recommendations on pay without any material alteration with a few exceptions in Defence Pay Matrix in order to maintain parity in pay with Central Armed Police Forces," a gazette notification said.

The notification said there shall be two dates for grant of increment, namely 1 January and 1 July of every year instead of the existing date of 1 July, provided that an employee shall be entitled to only one annual increment on either one of these two dates depending on the date of appointment, promotion or grant of financial upgradation.

The recommendations on allowances except dearness allowance have been referred to a committee comprising the finance secretary and secretary (expenditure) as chairman.

The recommendations of the commission relating to interest bearing advances as well as interest-free advances have been accepted with the exception that interest-free advances for medical treatment, travelling allowance for the family of the deceased, travelling allowance on tour or transfer and leave travel concession shall be retained, said the notification.

The recommendations for an increase in the rates of monthly contribution towards the Central Government Employees Group Insurance Scheme have not been accepted. The existing rates shall continue.

The department of expenditure and department of financial services will work out a customized group insurance scheme for central government employees.

The government also accepted a recommendation that central government employees should not get annual increment if their performance is not up to mark.

The benchmark for performance appraisal for promotion and financial upgradation has been enhanced to “very good" from “good" level under the Modified Assured Career Progression Scheme (MACPS), and if an employee fails to meet the benchmark of either MACPS or a regular promotion within the first 20 years of their service, his/her annual increments will be withheld, the notification said.

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