Massive relief for Central government employees; 7th Pay Commission notification issued

New Delhi: In a major relief for lakhs of Central Government employees, the implementation notification of the 7th Pay Commission was issued on Tuesday, following which the employees will now get the revised pay from their August salaries.

The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

The Government after consideration decided to accept the recommendations of the Commission in respect of the categories of employees covered in its terms of reference.

The Government has accepted the Commission’s recommendations on Minimum Pay, Fitment Factor, Index of Rationalisation, Pay Matrices and general recommendations on pay without any material alteration with the following exceptions in Defence Pay Matrix in order to maintain parity in pay with Central Armed Police Forces.

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 comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members.

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 rates in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016.

The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only.

As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents.

Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments.

They will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute.