7th pay commission- key points Analysis

By | July 28, 2016
(Last Updated On: July 28, 2016)

7th Pay commission-key points Analysis

Withholding of Annual Increments

As per Para 5.1.46 of the report of 7th Pay commission accepted by Government:
Withholding of annual increments in the case of those employees who are not able to meet the benchmark either for MACP or a regular promotion within the first 20 years of their service. (Para 5.1.46 of the Report)

Two date for grant of Increments

There shall be two dates for grant of increment (i.e., January 1 and July 1 of every year) instead of existing date of July 1. Employee will get only one annual increment on either of these two dates depending on the date of appointment, promotion or grant of financial up gradation.

Minimum pay for employee Increased 

The minimum pay for employee will be raised to Rs 18,000 per month from the existing level of Rs 7,000. The maximum pay fixed at Rs 2.5 lakh per month..

Minimum pay in government with effect from 01.01.2016 at Rs. 18000 per month (Para 4.2.13 of 7th Pay commission  Report)

Performance Appraisal Benchmark Revised

Benchmark for performance appraisal for promotion and financial upgradation under MACPS to be enhanced from “Good” to “Very Good”. (Para 5.1.45 of Seventh Pay commission  Report)

Consolidated pay package

Consolidated pay package of Rs. 4,50,000 (Rupees Four Lakh and Fifty Thousand only) for Chairpersons of Telecom Regulatory Authority of India, Central Electricity Regulatory Commission, Insurance Regulatory and Development Authority, Securities and Exchange Board of India, Competition Commission of India, Pension Fund Regulatory and Development Authority, Petroleum and Natural Gas Regulatory Board, Warehousing Development and Regulatory Authority, and Airports Economic Regulatory Authority of India (Para No. 13.15 (i) of Seventh Pay commission  Report accepted by Government of India)

Consolidated pay package of Rs. 4,00,000 (Rupees Four Lakh only) for Members of Telecom Regulatory Authority of India, Central Electricity Regulatory Commission, Insurance Regulatory and Development Authority, Securities and Exchange Board of India, Competition Commission of India, Pension Fund Regulatory and Development Authority, Petroleum and Natural Gas Regulatory Board, Warehousing Development and Regulatory Authority, and Airports Economic Regulatory Authority of India (Para No. 13.15 (i) of Seventh Pay commission  Report accepted by Government of India)

Consolidated pay package in above cases to be raised by 25 percent as and when Dearness Allowance goes up by 50 percent. All other benefits, including Travelling Allowance/Daily Allowance on tour etc., to be provided by the Regulatory Bodies as per their rules and regulations. (Para No. 13.15 (ii) of Seventh Pay commission  Report accepted by Government of India)

Fitment Factor to be applied uniformly

The fitment factor of 2.57 to be applied uniformly for all employees. (Para 5.1.27 of Seventh Pay commission  Report accepted by Government of India)

Authorisation to take action 

Department of Personnel and Training has been authorised to take action regarding pay and related issues concerning IAS, IPS and Indian Forest Service (IFoS).

Customized group insurance scheme

The Finance Ministry will work out a customized group insurance scheme for central government employees.

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