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9/01/2016

Details of Seventh Pay Commission In India





The Union Cabinet has passed the proposals of the Seventh Pay Commission on pay and pensions that will help to improve consumption by providing the chance to put extra disposable in the hands of the 5.3 million pensioners and 4.7 million employees of the Central Govt. As per the new proposal, the hike is 2.5 times in the pension and the basic than the previous structure. The existing dearness payment will be combined with the basic pay.

What were the mottos of the seventh pay commission?
Finance Minister Mr. Arun Jaitley has addressed the impact of the decision as “a mixed bag” explaining that this pay commission will be successful to restore the demand in a stressed economy of the nation but it could also lead to price rise. However, the Cabinet will propose a review of the allowances. A committee directed by    Ashok Lavasa, the Finance Secretary will look after the proposals considering the antipathy of a number of employees over the suggestion to cut four allowances.

What’s new in this pay commission?

The pay panel has submitted 36 new allowances and has abolished 52 allowances in this 7th pay commission.
As per the recommendations, this pay commission has increased 23.5% in pay, allowances, and pensions. It has envisioned Rs 39,100 crore increase in pay, Rs 29,300 crore increase in allowances and Rs 33,700 crore increase in pensions that will result in an annual increment of Rs 1.02 lakh crore.

The minimum pay of the government employees is set at Rs 18,000 per month that is more than double of the previous pay, Rs 7,000. The maximum pay has set to Rs 2, 25,000 per month for top scales and Rs 2, 50,000 per month for cabinet secretary and others.

Another important decision of the 7th pay commission is that Rs 73, 650 crores of the total expenses will be borne by the General budget and the Railway budget will bear Rs 28,450 crore.
These recommendations have increased the expenditure of the government but there are another issue too like inflation has raised its head by the time after the implementation of the pay commission.


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