*Paromita Das
The Central Government engages the Pay Commission after a period of time to revise the salary structure of around 5.5 million Central Government employees. Since independence, the Central Government has established seven pay commissions (the most recent of which is currently in operation), each of which reviews and recommends changes to the emolument structure of government defense and civil personnel.
The 7th Pay Commission
What Is the 7th Pay Commission, and What Does It Mean?
A Pay Commission is a Central Government administrative system and mechanism that reviews and examines existing salary structures and makes recommendations for changes (in pay, allowances, benefits, bonuses, and other benefits) for civil and military employees.
In addition, after evaluating employee performance and productivity, a Pay Commission reviews bonus rules. The Pay Commission’s responsibilities also include reviewing existing pension plans and other retirement benefits.
Only after assessing our country’s economic situation and available resources does the Pay Commission make a recommendation. The employees of the Central Government are the primary focus of this Commission.
Since 1947, approximately 7 pay commissions have been established, as previously stated. The most recent, the Seventh Pay Commission, was established on February 8, 2014. Every ten years, the Central Government convenes a Pay Commission to revise the pay structure of Central Government employees.
The government gives you an 18-month window (starting from the date of its founding) to submit a report recommendation. After the recommendations have been finalized, the Commission may send interim reports on any subject. The Central Government has the authority to accept or reject recommendations because this is not a constitutional body. The State Government, on the other hand, usually accepts recommendations and implements them with minor changes.
The 7th Pay Commission is significant because it operates while taking into account all of an employee’s monetary needs. This Commission is responsible for the basic salary, as well as other benefits such as dearness allowances, house rent allowances, and travel allowances. For example, if a soldier is stationed on a snow-covered mountain, he will be paid extra for working in such a harsh environment.
A pregnant government employee, on the other hand, will be entitled to 26 weeks of maternity leave, and a male central government employee will be entitled to 15 days of paternity leave.
The 7th Pay Commission’s goal is to: The Pay Commission’s main goal is to ensure salary increases, maximize employee benefits, and protect employee rights.
Individuals can gain a clear understanding of the 7th Pay Commission’s meaning, importance, and objective by reading the preceding section. So let’s concentrate on the most recent, namely the 7th Pay Commission, and its highlights.
What Are the 7th Pay Commission’s Main Points?
During the UPA government’s rule, the government established the 7th Pay Commission, which was chaired by Justice Ashok Kumar Mathur.
On November 19, 2015, seven other members from various fields submitted a report as a group.
Their recommendations took effect on January 1, 2016. The structure of emoluments, allowances, and service conditions of individuals serving in the Armed Forces are the subject of this report.
The 7th Pay Commission’s Highlights
Pay Matrix Redesign
Instead of introducing a new Pay Matrix, the 7th Pay Commission has recommended that existing Pay Bands and Grade Pay be abolished. This recommendation was approved by the central government. Previously, authorities determined an employee’s status based on grade pay, which will now be evaluated in Pay Matrix. They created pay matrices for a variety of groups, including military personnel, civilians, and military nursing services. The goal of putting together various Pay Matrixes is the same.
Minimum Wages
The minimum wage has been raised from Rs. 7000 to 18000 per month by this Pay Commission. The minimum starting salary will now be Rs 18,000. A newly recruited class 1 officer, on the other hand, will be paid Rs. 56,100. This salary structure has a compression ratio of 1:3.12, which means that a class 1 officer (on direct recruitment) will earn three times as much as an entry-level entrant.
Increment Rates
The rate of pay increase has been set at 3% by the 7th Pay Commission. Employees will benefit in the long run as a result of this decision because they will receive a 2.57 times annual increment in the future than they do now.
New Organizational Structure
Previously, there were several pay levels; however, a new structure incorporated all of them. The Index of Rationalization has been approved by the Central Government, and it has been decided to offer a minimum pay at each level of the Pay Matrix based on responsibility, accountability, and increasing role as the hierarchy progresses.
The House Building Advance Cabinet has approved the 7th Pay Commission’s recommendation to increase the House Building Advance ceiling from Rs.7.50 lakh to 25 lakh. In addition, the Cabinet has kept four interest-free advances: TA on transfer or tour; TA for the family of a deceased employee, and advances for medical treatment. All other interest-free advances, on the other hand, are no longer available.
The 7th Pay Commission recommended that the monthly contribution to the Central Government Employees Group Insurance Scheme be increased (CGEGIS). Cabinet, on the other hand, rejected this recommendation and decided to keep the rate at its current level. Employees’ net salaries will rise by 1470 dollars as a result. In addition, the Cabinet has proposed to the Finance Ministry that a customized group insurance scheme with high-risk coverage and low premiums be introduced for personnel employed by the Central Government.
Factor of Fitment
One of the main features of the 7th Pay Commission is the fit factor. In this case, a 2.57 fitment factor will be applied to all levels of Pay Matrices. After deducting DA, government employees’ or retirees’ salaries or pensions will increase by at least 14.29% on January 1, 2016.
Allowances are merged
This Commission has recommended that 51 allowances be demolished and 37 allowances be subsumed after reviewing 196 allowances. Because this significant change in the current allowance provisions may have an impact on government employees, the Cabinet has decided to form a committee (chaired by the Finance Secretary) to review the 7th Pay Commission’s allowance recommendations.
This Committee will have four months to review the recommendations and submit reports. Until then, all current allowances will continue to operate at their current rates.
Other Determinations
Aside from the aforementioned pointers, the 7th Pay Commission made a recommendation that affects employees, including those in the Defense and Combined Armed Police Forces (CAPF). The following are some of them:
Gratuity
The gratuity ceiling has been raised from ten lakh to twenty lakh rupees. Furthermore, when DA increases by 50%, the Gratuity ceiling increases by 25%.
Military Service Pay has been recommended by the 7th Pay Commission to be revised from Rs. 1,000, 2,000, 4,200, and 6,000 to 3,600, 5,200, 10,800, and 15,500 for personnel involved in various categories of Defense Forces.
Leaves are absorbed
Work Related Illness and Injury Leave was created by combining Special Disability Leave, Hospital Leave, and Sick Leave (WRIIL). Due to a variety of reasons related to WRIIL, the Commission has recommended that all allowances and pay in full be provided to employees while they are hospitalized.
Ex-Gratia Compensation in the Form of a Lump Sum Payment
The Ex-Gratia Lump Sum Compensation for personnel involved in various civil and defense forces categories has been increased fromRs. 10-20 lakh to 24-45 lakh by this Commission. This sum will be distributed to the next of kin.
Gratuity at the end
Officers should be allowed to leave the Armed Forces at any time between 7 and 10 years of service, according to the 7th Pay Commission. In addition, they will be paid a terminal gratuity of 10.5 months’ reckonable emolument.
The Cabinet has decided to work on certain aspects of the 7th Pay Commission’s recommendations. The following are some of them:
The Cabinet will form two committees, one of which will focus on proposing measures to streamline the National Pension Scheme’s implementation. The other will look into any inconsistencies that may arise as a result of the Commission’s recommendations.
Individual post or cadre-specific administrative issues, which the Commission has not been able to resolve, may be investigated by the concerned ministries.
What Is An Armed Forces Disability Pension?
An officer will be granted a Disability Pension if he or she becomes invalidated due to a disability caused by or aggravated by military service.
This pension has two parts: a disability component and a service component. This service component is equal to the determined retirement pension. For 100% disability, the disability element is set at 30% of the last drawn salary, or Rs. 3510 per month. The amount will be reduced accordingly if the disability is less than 100%. Armed Forces Disability Pension (including disability and service elements) is tax-free (as per the circular on 24th June 2019).
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