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A quick look at Seventh Pay Commission’s recommendations

New Delhi:  The Seventh Pay Commission headed by Justice AK Mathur submitted its report to Indian Finance Minister Arun Jaitley on Thursday. It recommended a 16-percent salary hike for government servants with an estimated 47 lakh serving central government employees and 52 lakh pensioners expected to benefit from the recommendations.

Following are some of the highlights:.

  • A 16-percent salary hike recommended.
  • A 24-percent hike in pension, besides a minimum pay of Rs.18,000 per month for all entry-level employees.
  • Rs.2.5 lakh for the senior-most serving officer, the cabinet secretary.
  • Increase in pay will be 16 percent, increase in allowances will be 63 percent.
  • Annual increment of 3 percent recommended.
  • An estimated 47 lakh serving central government employees and 52 lakh pensioners will be impacted.
  • Proposals will entail an outflow of Rs.102,100 crore from the exchequer during the next fiscal.
  • One rank One pension(OROP) proposal recommended for all employees, including the defence personnel, retiring before January 1 next year.
  • Rate of house rent allowance be revised to 27 percent, 18 percent and 9 percent when dearness allowance crosses 50 percent, and to 30 percent, 20 percent and 10 percent when it crosses 100 percent.
  • House building advance ceiling proposed at Rs.25 lakh against Rs.7.5 lakh.
  • Health insurance scheme for central government employees and pensioners.
  • The ceiling of gratuity recommended at a higher rate of Rs.20 lakh, against Rs.10 lakh.
  • For defence personnel, against the existing pay of Rs.6,000 per month for service officers, the proposal is for Rs.15,500.
  • Performance-related pay for all categories of central government employees.

(Inputs from IANS)



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