Highlights of Recommendations of Seventh Central Pay Commission

Highlights of Recommendations of Seventh Central Pay Commission / 7th pay commission Report Highlights

Following are the highlights of the recommendations made by the 7th Central Pay Commission, headed by Justice A K Mathur, which submitted its report to Finance Minister Arun Jaitley on 19.11.2015

Recommended Date of implementation: 01.01.2016

Minimum Pay: Based on the Aykroyd formula, the minimum pay in government is recommended to be set at Rs18,000 per month.

Maximum Pay :Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level.

Financial Implications:

The total financial impact in the FY 2016-17 is likely to be Rs1,02,100 crore, over the expenditure as per the ‘Business As Usual’ scenario. Of this, the increase in pay would be Rs 39,100 crore, increase in allowances would be Rs 29,300 crore and increase in pension would be Rs 33,700 crore.

Out of the total financial impact of Rs1,02,100 crore, Rs 73,650 crore will be borne by the General Budget and Rs28,450 crore by the Railway Budget.

In percentage terms the overall increase in pay & allowances and pensions over the ‘Business As Usual’ scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent.

The total impact of the Commission’s recommendations are expected to entail an increase of 0.65 percentage points in the ratio of expenditure on (Pay+Allowances+ Pension) to GDP compared to 0.77 percent in case of VI CPC.

New Pay Structure: Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency,the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix.

Fitment: A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.

Annual Increment: The rate of annual increment is being retained at 3 percent.

Modified Assured Career Progression (MACP):

Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”.

The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service.

No other changes in MACP recommended.

Military Service Pay (MSP): The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows:

Present Proposed
i. Service Officers Rs6,000 Rs15,500
ii. Nursing Officers Rs4,200 Rs10,800
iii. JCO/ORs Rs2,000 Rs 5,200
iv. Non Combatants (Enrolled) in the Air Force Rs1,000 Rs 3,600

Short Service Commissioned Officers: Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. They will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute.

Lateral Entry/Settlement: The Commission is recommending a revised formulation for lateral entry/resettlement of defence forces personnel which keeps in view the specific requirements of organization to which such personnel will be absorbed. For lateral entry into CAPFs an attractive severance package has been recommended.

Headquarters/Field Parity: Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.

Cadre Review: Systemic change in the process of Cadre Review for Group A officers recommended.

Allowances: The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.

Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance.

The current Siachen Allowance per month and the revised rates recommended are as follows:

Present Proposed
i. Service Officers Rs21,000 Rs31,500
iii. JCO/ORs Rs14,000 Rs21,000

This would be the ceiling for risk/hardship allowances and there would be no individual RHA with an amount higher than this allowance.

House Rent Allowance: Since the Basic Pay has been revised upwards, the Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

In the case of PBORs of Defence, CAPFs and Indian Coast Guard compensation for housing is presently limited to the authorised married establishment hence many users are being deprived. The HRA coverage has now been expanded to cover all.

Any allowance not mentioned in the report shall cease to exist.

Emphasis has been placed on simplifying the process of claiming allowances.


All non-interest bearing Advances have been abolished.

Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to Rs25 lakhs from the present Rs7.5 lakhs.

Central Government Employees Group Insurance Scheme (CGEGIS): The Rates of contribution as also the insurance coverage under the CGEGIS have remained unchanged for long. They have now been enhanced suitably. The following rates of CGEGIS are recommended:

Present Proposed
Level of Employee Monthly Deduction(Rs) Insurance Amount(Rs) Monthly Deduction(Rs) Insurance Amount(Rs)
10 and above 120 1,20,000 5000 50,00,000
6 to 9 60 60,000 2500 25,00,000
1 to 5 30 30,000 1500 15,00,000

Medical Facilities:

Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended.

Meanwhile, for the benefit of pensioners residing outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis.

All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS.

Pension: The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement.

The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix.

This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent.

In the case of defence forces personnel this amount will include Military Service Pay as admissible.

Fifty percent of the total amount so arrived at shall be the new pension.

An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension.

The pensioner will get the higher of the two.

Gratuity: Enhancement in the ceiling of gratuity from the existingRs10 lakh toRs20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.

Disability Pension for Armed Forces: The Commission is recommending reverting to a slab based system for disability element, instead of existing percentile based disability pension regime.

Ex-gratia Lump sum Compensation to Next of Kin: The Commission is recommending the revision of rates of lump sum compensation for next of kin (NOK) in case of death arising in various circumstances relating to performance of duties, to be applied uniformly for the defence forces personnel and civilians including CAPF personnel.

Martyr Status for CAPF Personnel: The Commission is of the view that in case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defence forces personnel.

New Pension System: The Commission received many grievances relating to NPS. It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.

Regulatory Bodies: The Commission has recommended a consolidated pay package ofRs4,50,000 andRs4,00,000 per month for Chairpersons and Members respectively of select Regulatory bodies. In case of retired government servants, their pension will not be deducted from their consolidated pay. The consolidated pay package will be raised by 25 percent as and when Dearness Allowance goes up by 50 percent. For Members of the remaining Regulatory bodies normal replacement pay has been recommended.

Performance Related Pay: The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes.

There are few recommendations of the Commission where there was no unanimity of view and these are as follows:

The Edge: An edge is presently accordeded to the IndianAdministrative Service (IAS) and the Indian Foreign Service (IFS) at three promotion stages from Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and the NFSG. is recommended by the Chairman, to be extended to the Indian Police Service (IPS) and Indian Forest Service (IFoS).

Shri Vivek Rae, Member is of the view that financial edge is justified only for the IAS and IFS. Dr. Rathin Roy, Member is of the view that the financial edge accorded to the IAS and IFS should be removed.

Empanelment: The Chairman and Dr. Rathin Roy, Member, recommend that All India Service officers and Central Services Group A officers who have completed 17 years of service should be eligible for empanelment under the Central Staffing Scheme and there should not be “two year edge”, vis-à-vis the IAS. Shri Vivek Rae, Member, has not agreed with this view and has recommended review of the Central Staffing Scheme guidelines.

Non Functional Upgradation for Organised Group ‘A’ Services: The Chairman is of the view that NFU availed by all the organised Group `A’ Services should be allowed to continue and be extended to all officers in the CAPFs, Indian Coast Guard and the Defence forces. NFU should henceforth be based on the respective residency periods in the preceding substantive grade. Shri Vivek Rae, Member and Dr. Rathin Roy, Member, have favoured abolition of NFU at SAG and HAG level.

Superannuation: Chairman and Dr. Rathin Roy, Member, recommend the age of superannuation for all CAPF personnel should be 60 years uniformly. Shri Vivek Rae, Member, has not agreed with this recommendation and has endorsed the stand of the Ministry of Home Affairs.

Click here to view more details

The full report is available in the website, http://7cpc.india.gov.in.

Source : PIB

(Release ID :131719)

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h.gifa.gifr.gifi.gifh.gifa.gifr.gifa.gifn.gifk.gif ( hari krishnamurthy K. HARIHARAN)"

” When people hurt you Over and Over think of them as Sand paper.
They Scratch & hurt you, but in the end you are polished and they are finished. ”
"Keep away from people who try to belittle your ambitions. Small people always do that, but the really great ones make you feel that you too, can become great."- Mark Twain.
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– Aditi Kumaria Hingu :

We live in an interesting country. A country where tradition and modernity co-exist peacefully, possibly the only country where Jews have not been persecuted, a country where the majority religion is less prescriptive and more accepting of diversity than many others, yet it faces the danger of being called ‘intolerant’, largely due to its own over enthusiastic proponents.

However, despite all the dichotomies that exist in our society, there has been two unifiers- Prime Minister Modi and social media. Everyone has a view on the PM. A virtual industry has cropped up around Modi – whether it is a prosaic as the Modi kurta or whether it is as intellectual as blaming him for everything – his frequent foreign tours, his inability to do yogasanas flexibly (did we elect a PM or an acrobat?), his sartorial designs etc.

Nothing showcases this as beautifully as a cursory look at my Facebook feed. Social media (largely FB) has again been a big unifier in our country and it is not uncommon to have friend lists running in a couple of hundreds. Of course, the FB audience is largely the English-familiar, middle class but it is fair to assume that this middle class is made up of a heterogeneous group of people rather than being one homogenous mass.
In recent days, I have learnt a lot from reading the FB news feed and my three main learnings are below –

Lesson 1:

For the English speaking middle class, a single Dadri is far more horrendous than all the previous massacres that have happened. If a massacre happened while the Congress government was in Centre, then it was ‘an unfortunate incident’. But if PM Modi is in the Centre, then even one isolated incident is worse that state sponsored pogrom.

Nayantara Sehgal returned her Sahitya Akademi Award in support of ‘…all dissenters who now live in fear and uncertainty.’ She and others who followed her have been lauded for taking a stance by many of my FB friends. However, nobody questions why were the intellectuals silent when the 1984 Sikh massacre or the 1990s exodus of Kashmiri Pandits took place?

India has never been as intolerant or racist as many other countries still are – A foreign born can never aspire to become the leader of the USA. In India, we have had Sonia Gandhi reigning as the supreme leader for decades.

Gen. (retd) V K Singh risked his own life to be at the forefront of evacuation of 4000+ Indian from Yemen – most of them being Muslims. He is possibly the only political leader who was physically present at a war zone to oversee evacuation – yet he is portrayed as an intolerant leader based on comments taken out of context.

Lesson 2:

Blaming PM Modi for everything is the ‘fashionably correct’ thing’ to do –

be it dal prices (remember Onion prices in UPA II rule?),
farmer suicides (how is ~1200 farmer suicides in Jan-Aug 2015 any worse than 3000+ suicides in 2013?), vandalization of churches (proved to be unrelated acts of mischief by members of different religions), and
for the general state of filth and corruption all around…

what the previous dispensations could not achieve in 60 years of rule, Modi is expected to deliver in one year. Many Indian politicians tend to be motor mouths and focus on short term sensationalism. The ruling party is no exception.
PM Modi is panned by intellectuals for not reining in his party colleagues, but is he a dictator or a puppeteer?
Each of these politicians has their own support base and they will play to the gallery to further their own political gains.
In any case, have any of the recent utterances been worse than Mulayam Singh Yadav’s infamous ‘boys will be boys’ (‘justifying’ rape) or
Suresh Kalmadi’s equally infamous ‘their hygiene levels are different than ours, you see’ (justifying filthy accommodation in Delhi Commonwealth Games).
Nobody asked Manmohan Singh for an explanation for these or any of the numerous multi crore scams that were a common feature of his tenure? Yet Modi is asked for an explanation for any utterance made by anybody even remotely connected with BJP/RSS.

Lesson 3:

True secular, nation loving intellectuals love to blast the Government for all the ills in the country especially those involving perceived ‘minorities’. Despite concerted efforts at minority appeasement by previous dispensations, if the minorities are still backwards, surely one man cannot be blamed for it. It is true that there are many ills prevalent in our country, but India is a complex and dynamic country to govern. One man cannot undo decades of misrule.
Like all organizations, the current Government has performers and non-performers. Are the armchair nationalists even comparing Suresh Prabhu’s silent, laudable efforts at improving the health of Indian Railways with the populist measures that were taken by Mamta Banerjee or Lalu Yadav?

Criticizing the government on social media is easy, it attracts eyeballs and generates buzz. But it does not translate into nation building. Nation building happens away from the glare of lights – it is about villages getting connectivity through roads, it is about girls’ continuing education because their school now has a toilet, it is about the India narrative changing from apologetic to one that is confident and sure.
Going by what the armchair intellectuals seem to suggest, there has never been a darker time in India. It is ironical that the idiocy of Rahul Gandhi, the complicity of Manmohan Singh, the craven greed of Lalu Yadav, the ruthlessness of Sonia Gandhi are all preferred by the intelligentsia than the ‘roll up the sleeves’ attitude of Modi.
Or maybe, it is the PM who has got it all wrong – he should not waste time on development. He should be an inactive, invisible PM like his predecessor. Or even better, he should give politically correct soundbytes and garner wealth at the cost of the exchequer. That is what is desired from him.

This is the irony of my FB feed and our nation today – we only want leaders who talk, we don’t want leaders who work. And maybe that is the reason why decades after independence, we are still a third world nation…because a leader can only be as good as its citizens let him be.

__._,Born on 17 September 1950 in a small town in Gujarat, he grew up in a poor but loving family ‘without a spare rupee’. The initial hardships of life not only taught the value of hard work but also exposed him to the avoidable sufferings of the common people. This inspired him from a very young age to immerse himself in service of people and the nation. In initial years, he worked with the Rashtriya Swayamsevak Sangh (RSS) a Nationalist organization devoted to nation building and later devoted himself in politics working with the Bharatiya Janta Party organization at National and State level. Shri Modi completed his MA in political science from Gujarat University.

In the year 2001, he became the Chief Minister of his home State Gujarat and went on to serve a record four terms as Chief Minister. He transformed Gujarat, which was reeling from the after-effects of a devastating earthquake, into a growth engine that makes a strong contribution to India’s development.

Narendra Modi is a ‘People’s Leader’, dedicated solving their problems and improving their well-being. Nothing is more satisfying to him than being amongst the people, sharing their joys and alleviating their sorrows. His powerful ‘personal connect’ with the people on ground is complemented by a strong online presence. He is known as India’s most techno-savvy leader, using the web to reach people and bring about change in their lives. He is very active on social media platforms including Facebook, Twitter, Google+, Instagram, Sound Cloud, Linkedin, Weibo and other forums.

Beyond politics, Narendra Modi enjoys writing. He has authored several books, including poetry. He begins his day with yoga, which centers his body and mind and instills the power of calmness in an otherwise fast-paced routine.

This is the man, an embodiment of courage, compassion and conviction, on whom the nation has bestowed its mandate, trusting that he will rejuvenate India and make it a bright beacon to the world.


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Prime Ministerof INDIA

Dynamic, dedicated and determined, Narendra Modi arrives as a ray of hope in the lives of a billion Indians.