Friday, November 20, 2015

7 PC - 15 highlights 2015

The much-awaited Seventh Pay Commission submitted its report on Thursday, recommending a 23.55 per cent increase in salary, allowances and pension in what was a mega post-Diwali bonanza for nearly 47 lakh central government employees and 52 lakh pensioners. Here are the highlights of the recommendations:

1. The new pay structure will be implemented from January 1, 2016, which means the government will have no arrears to pay.


2. 16 per cent hike in basic pay, 63 per cent rise in allowances.


3. Annual increment constant at 3 per cent. 52 allowances have been abolished, while another 36 have been merged with existing allowances.


4. The maximum salary under the new policy would be Rs 2.5 lakh per month, Rs 18,000 to be the minimum pay.


5. In the 6th pay commission, the maximum was Rs 90,000, while the minimum pay was Rs 6,600.


6. The actual hike, however, is more modest because there has been a 119 per cent hike in Daily Allowance since the 6th pay commission was implemented ten years ago.


7. Insurance amounts in group insurance raised massively to up to Rs 50 lakh. Premium deduction set to rise.


8. 24 per cent rise in pension to Rs 1,76,300 crore, an increase of Rs 33,700 crore.


9.Virtual one-rank-one-pension for civilian employees and paramilitary staff too. Army veterans had raised the first call, recently leading a massive protest in New Delhi and other places.


10. Heads of regulatory bodies dealing with telecom, capital and futures market, insurance, power and airports to get a consolidated pay of Rs 4.50 lakh per month.


11. Significant rise in the Military Service Pay (MSP), which is a compensation for various aspects of military service.


12. In order to make armed forces more attractive to the youth, the panel has proposed gratuity and a fully-funded one-year course at premier institutions like the IITs and the IIMs.


13. Short service commissioned officers now allowed to exit Army at any point in time between 7-10 years of service.


14. Performance-linked incentives, as is the practice in the private sector, has also been suggested for the central government employees.


15. No more interest-free loans for the central government employees.

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