Don’t miss the latest developments in business and finance.

image

7th Pay Commission

About 7th Pay Commission

Facebook IconLinkedIN Icon

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.

Latest Updates on 7th Pay Commission

Karnataka government employees union has announced to go on an indefinite strike from March 1 if their demand for implementation of recommendations of the Seventh Pay Commission is not fulfilled

Updated On: 26 Feb 2023 | 6:06 PM IST

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?

Updated On: 30 Aug 2022 | 7:00 AM IST

Odisha CM Naveen Patnaik announced the disbursement of outstanding 20 per cent arrears, partaking to salary revision under the 7th Pay Commission, for the state government employees

Updated On: 29 Mar 2022 | 7:17 AM IST

The CM said the state had to repay a debt of Rs 50,000 crore to the Centre, but did not shy away from implementing the new pay scale "despite our limited resources".

Updated On: 09 Jan 2020 | 1:13 PM IST

The Delhi government is running three universities, one institute, 12 fully funded and 16 partially funded colleges under the Delhi University

Updated On: 29 Oct 2018 | 6:10 PM IST

The move will put an additional burden of Rs 2.3 billion annually on the state exchequer

Updated On: 03 Aug 2018 | 9:47 PM IST

It has also been decided to link grant of overtime allowance with biometric attendance

Updated On: 26 Jun 2018 | 4:22 PM IST

J&K has become the first state to adopt 7th pay commission recommendations; the financial implication of the implementation will be around Rs 42.01 bn per year, besides Rs 74.77 bn in one-time arrears

Updated On: 25 Apr 2018 | 11:03 AM IST

Mizoram finance minister Lalsawta said waiting for the recommendation of a committee to study the seventh pay commission which was yet to submit its report

Updated On: 23 Jul 2018 | 10:05 AM IST

Employees not affiliated to the MGSF, however, did not take part in the mass casual leave

Updated On: 25 Oct 2017 | 10:52 PM IST

Govt has also announced two new skill schemes; wants to send 300,000 youth for training in Japan

Updated On: 12 Oct 2017 | 12:29 PM IST

The hike would be anywhere between Rs 10,000 and Rs 50,000

Updated On: 11 Oct 2017 | 8:56 PM IST

The move comes on the recommendation of the Seventh Central Pay Commission

Updated On: 09 Oct 2017 | 5:03 PM IST

About 450,000 state government employees and 350,000 retired employees will be benefited

Updated On: 29 Aug 2017 | 10:52 PM IST

This is the second three-month extension granted by the Centre

Updated On: 18 Jul 2017 | 8:00 PM IST

HSBC report said after HRA increase, headline inflation is likely to rise by about 65 bps for a year

Updated On: 02 Jul 2017 | 12:27 PM IST

Govt had last week raised their pay package after cabinet accepted certain demands of 3 services

Updated On: 08 May 2017 | 10:31 PM IST

Report will be taken up by the Union Cabinet after it is examined by empowered group of secretaries

Updated On: 28 Apr 2017 | 2:15 AM IST

Pay panel recommended abolition of 52 allowances while subsuming 36 others into existing ones

Updated On: 27 Apr 2017 | 9:52 PM IST

Development comes against backdrop of teachers' associations threatening to strike

Updated On: 18 Apr 2017 | 8:00 PM IST