The 7th Central Pay Commission, headed by Justice A K Mathur, submitted its report to Finance Minister Arun Jaitley and has recommended 23% hike in gross salary of central government.
- The 900-page report of the Pay panel with recommendations will be implemented from January 1, 2016.
- Recommendations will impact 47 lakh serving govt employees, 52 lakh pensioners, including defence personnel.
- Financial impact of implementing recommendations will be Rs 1.02 lakh crore – Rs 73,650 crore to be borne by Central Budget and Rs 28,450 crore by Railway Budget.
- Based on the Aykroyd formula – Minimum pay fixed at Rs 18,000 per month & Maximum pay at Rs 2.25 lakh
- Annual increment – 3%
- Pension hike – 24%
- Basic salary hike – 16%
- Gratuity ceiling – Enhanced from Rs 10 lakh to Rs 20 lakh; ceiling on gratuity to be raised by 25 % whenever DA rises by 50 %.
- Cabinet Secretary pay – Rs 2.5 lakh as against Rs 90,000 per month pay band currently
- MSP for service officers – Doubled to Rs 15,500 per month from Rs 6,000 currently; for nursing officers to Rs 10,800 from Rs 4,200; for JCO/ORs to Rs 5,200 from Rs 2,000 and for non-combatants to Rs 3,600 from Rs 1,000
- Short service commissioned officers will be allowed to exit the armed forces at any point in time between 7 to 10 years of service
- Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing allowances or in newly proposed allowances.
- One Rank One Pension proposed for civilian government employees on line of OROP for armed forces
Chairmans of Pay Commission
1st – Srinivasa Varadachariar
2nd – Jagannath Das
3rd – Raghubir Dayal
4th – P N Singhal
5th – Justice S. Ratnavel Pandian
6th – Justice B.N.Srikrishna