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  • Category: Miscellaneous

    After six months of wait, seventh pay commission report will be implemented in the seventh month.

    After six months of long wait, seventh pay commission report will be implemented in the seventh month (July)of this year.

    Our Government has approved the seventh pay commission report and decided to implement it w.e.f July this year (Effective from 01 Jan 2016).

    All the central government employees and the pensioner will have a good time with the increase in their pay structure. It is alleged that the increase is about 24 percent including all allowances.

    What a lovely July! Let us celebrate.
  • #569530
    Some of the highlights of the seventh pay commission are as follows -
    1. About one crore central government employees out of which about sixty lakh are pensioners will benefit w.e.f. 01.01.2016.
    2. Salaries and allowances have been raised by 23.5%, whereas pensions will increase by 24%.
    3. It will cost the Government about one lakh crores which is about 0.7 percent of India's GDP.
    4. The minimum and maximum salary of a Government employee will be Rs. 18,000 per month and Rs. 2.5 lakh per month respectively.
    The employees will get arrears of the past six months.

    Let us encourage each other in sharing knowledge.

  • #569538
    The rate of increase of pay is the minimum in the 7th CPC. The fitment factor is only 2.57 for all categories of employees except the top-level bureaucrats.
    The other less-discussed highlights of Finance Minister's announcement are:-
    1. The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs 7.50 lakh to 25 lakh. Only four interest-free advances, viz., Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest-free advances have been abolished.
    2. The Cabinet also decided not to accept the steep hike in monthly contribution towards CGEGIS recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs 1,470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customised group insurance scheme for Central Government Employees with low premium and high risk cover.
    3. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation to be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.
    4. The Commission examined 196 existing Allowances and by way of rationalisation, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide-ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time-bound manner and submit its report within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.
    5. The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission's Report.

    “Whenever I feel the need to exercise, I lie down until it goes away.” - Paul Terry

  • #569545
    I congratulate all the beneficiary employees, especially if any ISC member is benefited. They can have more money to spend in the coming festival season . From whatever demonstration examples I could read, overall I do not find the increase bad.

    However the employee unions should ensure that the media presents the actual net increase in each scale and not the misleading figures.

    What makes the public get a wrong idea is the media blares like salary raised from 7000 to 18000. (Here actually the DA is merged with the old basic pay and the new basic pay thus arrived is 18000). But actually the gross increase is about 4200 or so n that on mere monthly salary. But even that is acceptable.

    Such revisions give more benefit to the juniors and those nearing retirement. For juniors, they have long service period and the cumulative effect takes place. It helps those nearing retirement, as most of their terminal benefits are based on last drawn pay.

    Let us keep faith on ourselves and work sincerely, not leave everything to fate.

  • #569551
    Mr. Venkiteswaran has excellently pointed out the mis-representation of facts by the media. The media always say hat there is three-fold increase in pay considering the basic pay and ignoring the DA component. But in actuality, Government employees feel lucky if the increase is 20% (in every ten years). Media also mislead people stating the total expenditure of the Govt. for the salary of employees. In actuality, the increase of salary is not more than Rs. 10,000/- p.m. for lower/middle-level officers (taking into consideration the income tax component).
    “Whenever I feel the need to exercise, I lie down until it goes away.” - Paul Terry

  • #569556
    Now all the Central government employees and pensioners have become more rich and their purchasing power would also increased visa vis their increase in salaries recommended in the 7th pay commission. It is estimated that over 1,02,000 lakh crores would be spent by the central government annually to bear the burden of hike in salaries and arrears. Now with this we can foresee state government employees and bank employees also joining the stir and demanding pay equivalent to central pay. What ever it is those who are in government service are going to have blast in every month and partying would also increase during weak ends.
    K Mohan
    I consider myself as the learner everyday

  • #569562
    Mr. Kailash,
    Refer your #569530 para 2 . Salaries and allowances have been raised by 23.5%, whereas pensions will increase by 24%.

    How do you say that pensions will increase by 24%. Are you sure? I think it is a misleading information from you. It is only 2.57 times the basic pay of 6th pay commission. It amounts to only 14.2 % increase. The benefit of 24 % is applicable to serving employees which includes all their allowances like grade pay; HRA; TA; Transport Allowance; Night duty allowance; Hardlying money etc etc etc.

    No life without Sun ¤

  • #569575
    Sun (#569562) - The information shared by me in post #569530 was based on news items as seen by me on internet resources. I have no intention of sharing any misleading information. Though I am myself a central Government pensioner, but I will do nothing except to wait the amount whatever it is to be credited in my account in due course.
    Let us encourage each other in sharing knowledge.

  • #569577
    Nowhere it is mentioned that the pensioners are benefitted by 24 percent hike. It is only with the multiplication factor of 2.57.

    No life without Sun ¤

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