7th Pay Commission – What is good and bad for you?

Since last two years, millions of central government employees are eagerly waiting to get an increase in pay as per the recommendations under 7th Pay Commission

Central government employees may hope to get some good news at the beginning of the next financial year in April to expect a revision in salaries when the proposal is likely to be sent to the Cabinet for approval.

7th Pay Commission

The government may consider increasing the salary of lower-level officials, from matrix level 1 to 5, and go beyond the recommendations of the Seventh Pay Commission.

Government will not pay arrears on pay hike-bad news

As per news, under 7th Pay Commission, our government will not pay arrears on pay central government employees. Finance Minister Arun Jaitley will place it before the Cabinet in the beginning of April.

This could bring a bad news for around 50 lakh government employees who were expecting a good news from the Narendra Modi government. 

To recall, the resolution conveying the central government’s decision on recommendations of the 7th Central Pay Commission (CPC) on allowances published in Gazette of India on 6th July 2017.

In June last year, the Narendra Modi-led Cabinet approved the recommendations of the Seventh Pay Commission on House Rent Allowance (HRA) and other allowances for 48 lakh Central government employees.

Based on the report of Committee on Allowances (CoA) and the recommendation of E-CoS, the Cabinet had earlier approved the modifications in 34 allowances in its meeting held on 28th June 2017. All allowances are given the effect from 1st July 2017. It will benefit 34 lakh civilian employees and 14 lakh defense personnel.

Salary will hike under the 7th pay Commission-good news

Central government employees may hope to get some good news at the beginning of the next financial year in April. Salary is to be increased of the employees who are getting salaries from pay matrix level 1 to 5 and the proposal of pay hike will be sent to Cabinet at the beginning of April for approval.

As of now, Central government employees are drawing basic pay as per the fitment formula of 2.57 of the basic pay under the Sixth Pay Commission.

The 7th Pay Commission had earlier recommended Rs 18,000 as the basic salary but the employees, however, want the basic minimum pay to be hiked to Rs 26,000 per month, based on a fitment factor of 3.7.

 Following the implementation of the recommendations of the Seventh Pay Commission, the basic pay of Central government employees went up from Rs 7,000 to Rs 18,000 per month based on the fitment factor of 2.57, and effective from January 1, 2016.

The new scales of pay

The 7th Pay Commission new scales of pay provide for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e. Secretary, it would go up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary will be Rs 56,100.

Earlier this week, Finance minister Arun Jaitley submitted the Union Budget-2018-19 in front of the Parliament ad from next month the Chief Justice of India will now get a monthly salary of Rs 2.80 lakh, up from the present Rs 1 lakh per month.

Similarly, judges of the Supreme Court and Chief Justices of High Courts will draw a monthly salary of Rs 2.50 lakh, up from the current Rs 90,000. The judges of high courts, who get Rs 80,000 per month, will now onwards get Rs 2.25 lakh per month as per the said report.

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