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(General Awareness)
Highlights of Recommendations of Seventh Central Pay Commission
Highlights of the recommendations made by the 7th Central
Pay Commission, headed by Justice A K Mathur –
Recommended Date of implementation: 01.01.2016
Minimum Pay: the minimum pay in government is recommended to be set at ₹18,000 per
month.
Maximum Pay: ₹2, 25, 000 per month for Apex Scale and ₹2, 50, 000 per month for Cabinet
Secretary and others presently at the same pay level.
Financial Implications:
The total financial impact in the FY 2016-17 is likely to be ₹1, 02,100 crore.
Out of the total financial impact of ₹1,02,100 crore, ₹73,650 crore will be borne by the General
Budget and ₹28,450 crore by the Railway Budget.
In percentage terms the overall increase in pay & allowances and pensions over the ‘Business
As Usual’ scenario will be 23.55 percent.
New Pay Structure: The Pay Band and the Grade Pay shall be included in the New Pay Matrix.
Fitment: A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.
Annual Increment: The rate of annual increment is being retained at 3 percent.
House Rent Allowance: Commission recommends that HRA be paid at the rate of 24 percent,
16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities.
Modified Assured Career Progression (MACP):
Performance benchmarks for MACP have been made extra stringent from “Good” to “Very
Good”.
Allowances: The Commission has counselled abolishing fifty two allowances altogether.
Gratuity: Enhancement in the ceiling for the gratuity from the present ₹10 lakh to ₹20 lakh.
Military Service Pay (MSP), which is a compensation for the various aspects of military
service, will be admissible to the defence forces personnel only.
Short service commissioned officers will be allowed to exit the armed forces at any point in
time between 7 to 10 years of service.
Recommendations will impact 47 lakh serving govt employees, 52 lakh pensioners, including
defence personnel.
Date of Release -22-Jan-16 SUBJECT: GA www.bankersguru.org
(General Awareness)
Highlights of Recommendations of Seventh Central Pay Commission
Highlights of the recommendations made by the 7th Central
Pay Commission, headed by Justice A K Mathur –
Recommended Date of implementation: 01.01.2016
Minimum Pay: the minimum pay in government is recommended to be set at ₹18,000 per
month.
Maximum Pay: ₹2, 25, 000 per month for Apex Scale and ₹2, 50, 000 per month for Cabinet
Secretary and others presently at the same pay level.
Financial Implications:
The total financial impact in the FY 2016-17 is likely to be ₹1, 02,100 crore.
Out of the total financial impact of ₹1,02,100 crore, ₹73,650 crore will be borne by the General
Budget and ₹28,450 crore by the Railway Budget.
In percentage terms the overall increase in pay & allowances and pensions over the ‘Business
As Usual’ scenario will be 23.55 percent.
New Pay Structure: The Pay Band and the Grade Pay shall be included in the New Pay Matrix.
Fitment: A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.
Annual Increment: The rate of annual increment is being retained at 3 percent.
House Rent Allowance: Commission recommends that HRA be paid at the rate of 24 percent,
16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities.
Modified Assured Career Progression (MACP):
Performance benchmarks for MACP have been made extra stringent from “Good” to “Very
Good”.
Allowances: The Commission has counselled abolishing fifty two allowances altogether.
Gratuity: Enhancement in the ceiling for the gratuity from the present ₹10 lakh to ₹20 lakh.
Military Service Pay (MSP), which is a compensation for the various aspects of military
service, will be admissible to the defence forces personnel only.
Short service commissioned officers will be allowed to exit the armed forces at any point in
time between 7 to 10 years of service.
Recommendations will impact 47 lakh serving govt employees, 52 lakh pensioners, including
defence personnel.
Date of Release -22-Jan-16 SUBJECT: GA www.bankersguru.org
