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Friday, 20 November 2015

7CPC : 11 Main points of Commission panel report

NEW DELHI: Central government employees and pensioners are set for a big bonanza with the Seventh Pay Commission proposing a generous increase in their salary and allowance.

If accepted, the employees and pensioners will be richer by Rs 1.02 lakh crore, providing a big boost to the economy though the government finances will stretch the government's fiscal consolidation drive.

The pay commission has suggested a minimum salary of Rs 18,000 per month and maximum of Rs 2.25 lakh a month for apex scale. Cabinet secretary will get a salary of Rs 2.5 lakh a month.

The overall increase in salary, allowances and pensions is 23.55%. The increase in pay is 16%, allowances will be higher by 63% while pensions will rise 24%.

The system of grade pay and pay bands has been abolished.

The pay commission award usually leads to a higher demand for the automobile sector and real estate.

Main points of the pay panel report: 

1.Total financial implication to be Rs 1,02,100 cr in FY 2016-17

2. Pay commission recommends new pay matrix, dismantles band structure

3. Max pay recommended at Rs 2,25,000 per month for apex scale and Rs 2,50,000 for cab secy

4. Pay commission for HRA increase by 138.71%

5. Pay commission recommends increase in pensions by 23.63%

6. Pay Commission recommends consolidated pay package of Rs 4.5 lakh and 4 lakh per month for chairperson and members of select regulatory bodies

7. Recommends Performance Related pay (PRP) for central government employees

8. Commission recommends that government in consultation with Pension Regulator to come up with different options for investment mix in National Pension System and provide subscribers a range of option

9. Commission recommends Exempt Exempt Exempt (EEE) status for NPS to be at par with other pension schemes

10. Commission recommends setting up an ombudsman for redressing individual grievances relating to NPS

11. Commission recommends fully funded one year executive programme or a M tech programme at premier institutes for short service commissioned officers

 [The Economic times]

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