7th Pay Commission notification decoded: Pay hike to allowances- Here’s everything you need to know
Here are the 10 key facts you must know about the notification related to 7th Pay Commission recommendations.
New Delhi: The Central government employees and pensioners will get fatter paychecks starting from August salaries, according to a gazette notification issued by the Union government on the Seventh Pay Commission recommendations Tuesday.
The central government has decided to implement the seventh pay panel recommendations on pay and pension hike for its employees with effect from January 1, 2016, according to the gazette.
Here are the 10 key facts you must know about the 7th Pay Commission notification:
-The 7th Pay Commission recommendations on basic pay and pension hike will be effective from January 1, 2016. The arrears shall be paid during the Financial Year 2016-2017.
-With regard to fixation of pay of the employee in the new Pay Matrix as on 1st day of January, 2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31st day of December, 2015 shall be multiplied by a factor of 2.57.
-The recommendation of "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" has been "accepted". The benchmark for performance appraisal for promotion and financial upgradation has been enhanced to "very good" from "good" level.
-There shall be two dates for grant of increment namely, 1st January and 1st July of every year, instead of existing date of 1st July; provided that an employee shall be entitled
to only one annual increment on either one of these two dates depending on the date of appointment, promotion or grant of financial up-gradation.
-The recommendations on allowances (except Dearness Allowance) will be referred to a Committee. The Committee will submit its report within a period of four months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances will continue to be paid at existing rat es in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016.
-The recommendations of the Commission relating to interest bearing Advances as well as interest free Advances have been accepted with the exception that interest free Advances for Medical Treatment, Travelling Allowance for family of deceased, Travelling Allowance on tour or transfer and Leave Travel Concession shall be retained.
-The recommendations of the Commission for increase in rates of monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) for various categories of employees has not been accepted. The existing rates of monthly contribution shall continue.
-Department of Expenditure and Department of Financial Services will work out a customised group insurance scheme for Central Government employees.
-A Committee of Secretaries comprising Secretaries of Departments of Personnel and Training, Financial Services and Pension and Pensioners’ Welfare will be set up to suggest measures for streamlining the implementation of the National Pension System (NPS).
-Anomalies Committees will be set up by Department of Personnel and Training to examine individual, post-specific and cadre-specific anomalies arising out of implementation of the recommendations of the Commission.