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What is 7th Pay Commission?
What is a Pay Commission?
A pay commission examines and reviews the existing pay structure recommends changes in the salary, allowances, and other facilities for civil employees as well as for the military forces. In addition, it reviews the norms of bonuses, keeping in view the performance and productivity of the employees. Furthermore, a pay commission also examines the existing pension scheme and other retirement benefits.
The recommendations by the pay commission are made considering the economic conditions and accessible resources of the country and also the likely impact on the state governments.
The focus of the Pay Commission primarily remains on personnel serving the Central Government.
At least seven pay commissions have been constituted since 1947. After every ten years, the central government forms a pay commission to revise the salary structure of the government employees.
The first Pay Commission in India was established in January 1946 under the chairmanship of Srinivasa Varadachariar. The constitutional framework of the Pay Commission comes under the Department of Expenditure (Ministry of Finance).
7th Pay Commission
In India, employees and staffers of the central government receive their wages according to the 7th Pay Commission's composition. To begin with, the Seventh Central Pay Commission (CPC) was set up by the Government of India on February 28, 2014.
Chaired by Justice Ashok Kumar Mathur, the commission submitted its report on November 19, 2015. Among other things, the report covered matters relating to the structure of emoluments, allowances and conditions of service of Armed Forces personnel.
Objectives of the 7th Pay Commission
The 7th Pay Commission emphasises the need to hire, motivate and retain skilled staff and it is also concerned with human resource management reforms and long-term fiscal sustainability.
The Commission highlights the need to deliberate on factors such as intangible benefits to facilitate fair comparison with the private sector along with the role of the government as a model employer.
The purpose of the Seventh CPC is to examine, review and recommend changes in the principles that determine the earnings structure for several employees’ categories including:
— Central government employees
— Those associated with All India Services
— Members of Regulatory Bodies
— Personnel of Union Territories
— Officers and employees of the Indian Audit and Accounts Department
— Officers and employees of the Supreme Court
— Personnel affiliated to Defence Forces
Highlights of 7th Pay Commission
Minimum Pay: According to the Aykroyd formula, the minimum pay for the central government staff is recommended to be fixed at Rs 18,000 per month
Maximum Pay: Rs 225,000 per month for Apex Scale and Rs 250,000 per month for Cabinet Secretary and others presently at the same pay level
Annual Increment: The rate of annual increment retained at 3 per cent
7th Pay Commission allowance
According to the 7th CPC allowance framework, the central government pensioners and employees get the dearness allowance (DA) at the rate of 21 per cent of basic pay from the earlier 17 per cent of the basic pay with effect from January 1, 2020.
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Dearness Allowance for govt employees are like stopgap arrangements between two pay commission recommendations. Know what exactly a pay commission is and why are they so important for millions?