7th Pay Commission: Seven things to know about panel recommendations for Central govt employees

The minimum pay of an entry-level govt employee is increased from Rs 7,000 to Rs 18,000 per month.

New Delhi: The Narendra Modi government set up the Seventh Pay Commission to recommend changes in the salary structure of Central government employees, and currently, it has implemented the Seventh Pay Commission.

Here are seven important details about the Seventh Pay Commission recommendations:

Recommended minimum pay for govt employees

The minimum pay of an entry-level government employee is increased from Rs 7,000 to Rs 18,000 per month. For an entry-level Class I officer, the minimum salary is increased to Rs 56,100 per month.

Recommended maximum pay for govt employees 

The Seventh Pay Commission also recommends increasing the maximum pay for government employees to Rs 2.25 lakh per month for Apex Scale and Rs 2.5 lakh per month for Cabinet Secretary-level officers.

Pay Matrix

The status of a government employee will not be decided by Grade Pay but by the level in the new Pay Matrix.

Fitment 

The Seventh Pay Commission has recommended a uniform Fitment Factor of 2.57 for all employees. The annual increment in the Seventh Pay Commission has suggested to retain the annual increment of 3 percent per annum.

Allowances 

The Cabinet after examining 196 allowances, which are currently present, abolished 51 allowances and retained only 37 allowances.

House Rent Allowance

The Seventh Pay Commission has recommended that the House Rent Allowance increase of 24 percent HRA will increase to 27 percent, 18 percent, and 9 percent when DA (dearness allowance) crosses 50 percent. HRS will further increase and will be paid at 30 percent, 20 percent, and 10 percent when DA crosses 100 percent.

Advances

Apart from personal computer advance and house building advance, the Commission has abolished all non-interest bearing advances. House building advance has been increased from Rs 7.5 lakh to Rs 25 lakh.