7th Pay Commission

Finally, the wait for the 7^th pay commission ends soon and all the speculations and rumours about the pay hike has reached a conclusion. The seventh pay commission has recommended various bonanzas for central government employees as well as pensioners. Following are the highlights of 7^th pay commission.

1. 23.55 % increase in salary, allowances and pension. Presently, under 6^th pay commission, the CTC of a lieutenant in Indian army is approx. Rs 80000 per month. After 7^th pay commission implementation the CTC of a lieutenant will reach Rs. 98840 per month. Lieutenant is the entry rank after commissioning in Indian Army.

2. One-rank-one-pension will be implemented for civilian government employees working under central government.

3. Minimum basic pay of Rs. 18000 per month will be implemented and the maximum bar is kept as Rs. 2.5 lakhs per month.

4. 7^th pay commission will also benefit the staffs of autonomous bodies, public sector units and universities.

5. The overall increase in 23.55% in pay+allowances+pension. Following is the structural increase.

Increase in basic pay will be 16%
Increase in allowances 63%.
Increase in pension 24%.

6. Annual salary increment will be 3%.

7. Pay commission recommended that marginal arrears will be paid and macro-economic shock is discouraged.

8. Retiring personnel's database will be maintained and they can be retained after retirement on contractual basis.

9. Salary offered will attract high quality staff. Therefore, handsome salary offered to the government employees compared to corporate counterparts.

10. Basic pay+DA+Military Serice Pay will be considered for computation of pension.

11. Military Scale Pay revised to approx more than Rs. 15000.

12. Military Service Pay only be given to Armed Forces and not admissible to paramilitary forces.

13. Indian Army is facing 23% of lack of officers, Air Force is facing 4% lack of officers and Indian Navy is facing 17% lack of officers.

17. Grade Pay revision is not given much importance.

18. Big Bonanza for Short Service Commission officers.

In Civil Services exam, reduction of number of papers from 8 to 4.
Introduction of military science as optional subject in civil services exam.
5 Years age relaxation in civil services exam.
Short Service Commission officers can exit the services between 7th to 10th years of service.
Option to convert into permanent commission in 7th year of service.
Fully funded One year executive program from any premier management institute of India.
M.Tech program fully funded from any premier institute of India.

19. Proposed Grade Pay

Existing Proposed

Liuitenant Rs. 5400 Rs. 5400

Captain Rs. 6100 Rs. 6600

Major Rs. 6600 Rs. 7600

Lt Colonel Rs. 8000 Rs. 8700

Colonel Rs. 8700 Rs. 9000

Brigadier Rs. 8900 Rs. 9500

20. Acting rank allowance is abolished. You will get an additional post allowance in place of it.

21. Electricity allowance is abolished. It implies that starting 100 units were free earlier, now ZERO unit is free.

22. HRA is rationalized by 0.8%.

23. Instructional allowance is abolished. No instructor allowance will be given to instructors.

24. Kit maintenance allowance is abolished. It will be subsumed in dress allowance.

25. Uniform allowance is abolished. It will be subsumed in dress allowance.

26. Post Graduation allowance is rationalized further by 50%.

27. Qualification allowance is enhanced by 50%.

28. Siachen allowance is increased on Risk-hard max factor.

29. Compensatory hill allowance is abolished.

30. Tier - I technical allowance will be Rs. 3000. Tier - II technical allowance will be Rs. 4500 per month.

31. Ration money will be now under income tax.

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