In accordance with the past precedents for periodic pay revision of central government employees, the Govt of India appointed 7th Pay Commission in February 2014 with Justice Shri Ashok Kumar Mathur as Chairman and the following persons as members of the commission:
- Shri Vivek Rae
- Dr.Rathin Roy
- Smt Meena Agarwal
The 7th Pay Commission’s terms of reference included to examine, review, evolve and recommend changes in the pay structure and compensation packages of the central government employees including All India Services, Union Territories, officers in the Indian Audit and Accounts Departments and officers and employees in th Supreme Court. The Commission submitted its report int he month of November 2005, with record speed of less than 20 months.
On 28 June 2016 Govt of India approved the recommendations and the new pay scales are going to reflect in the monthly salary of employees from July 2016. The scales will be effective retrospectively from 1st January 2016, and the arrears will be disbursed in the month of October-November.
Revised Salary Structure as per 7th Pay Commission
|Old Scale||New Basic Pay 7th Pay Commission Salary||New HRA Class X/Y/Z City|
|Pay Band 1 5200-20200|
|Old Grade Pay|
|Pay Band 2 9300-34800|
|Pay Band-3 15600-39100|
|Pay Band-4 37400-67000|
|Higher Administrative Grade (HAG)
|Higher Administrative Grade (HAG+)|
|Cabinet Secretary Level|
Impact of 7th Pay Commission’s Recommendations on Government and Employees
In a report submitted to the Union Finance Minister in 2015, the Seventh Central Pay Commission recommended a 23.55 per cent hike in salaries, allowances, and pension. The Commission’s report recommended a 16 per cent increase in basic pay and a hike of 63 per cent in allowances. For pension holders, the Commission recommended a 24 per cent hike.
The recommendations of the 7th Pay Commission will benefit 47 lakh salaried central government employees and 52 lakh pensioners who will witness a spike in salary and bonuses. However, it is likely to pose a financial burden of Rs 1.02 lakh crore (around 0.65 per cent of the GDP) for the government.
Finance Minister Arun Jaitley had admitted earlier that the impact of implementing the recommendations would last for two to three years.
Discontentment Over Pay Commission’s Recommendations
Central government employees’ unions planned to go on 3-day agitation starting 19 January to protest over the pay matrix recommended by the Pay Commission. The union is unanimous in their dissatisfaction over the fact that the take-home pay is very much less if compared with previous pay commissions. They demand a change in the pay matrix and want the Central Government to accept increase in Minimum Pay.
Facts about the 7th Pay Commission
- Seventh pay commission is headed by Justice A K Mathur. The other members of the Pay Commission are Vivek Rae and Rathin Roy. Meena Agarwal is Secretary of the Commission.
- The Pay Commission is constituted almost every 10 years to revise the pay scale of central government employees.
- The recommendations of the Pay Commission are often adopted by states with some modifications.
- Minimum basic pay for central government employees was recommended at Rs 18,000. Maximum pay recommended in Rs 2.25 lakh per month.
- Pay Commission has recommended 3 per cent annual appraisal and 24 per cent hike in pension for central government employees.