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.