7th Pay Commission: All You Need To Know About Proposed Notifications

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7th Pay Commission

Union Cabinet shared its gazetted notification regarding the 7th Pay Commission issued by the central government through official website here on Monday. Being 69th Independence Day on 15th August 2016, the proposed notice, as well as recommendations, were held high thus enlisting all the important factors rendered by the Empowered Committee of Secretaries for the current pay scale commission. Adhered with a positive notion, the respective committee members included each and every individual coming under the required lower to top notch pay scale recipients. Here, in this article, we bring you detailed information for 7th Pay Commission and all you need to know about the proposed notifications.

Date of Implementation of 7th Pay Commission

The respective date of implementation of the 7th pay commissionis 1st of January, 2016, from which government employees will be provided the recommended benefits.

READ: Govt. To Bear Cost of Payments Done By Cards

Pay Scale Analysis

The recommended pay scale for billion of citizens witnessed 14.27% hike on basic salary which recorded all-time low in the past 70 years. In the previous pay scale of 6th Pay Commission suggested approximately 20% hike which subsequently got doubled during its implementation in 2008. The following pay commission granted changes in almost 1 crore individual’s pay scale which include 33 lakhs central government employees, 14 lakhs Armed Forces personnel, and 52 lakhs pension holders. The minimum pay in government is set to be Rs. 18,000/month whereas the maximum salary is Rs. 2,25,000/month for government employees and individuals belonging to Cabinet Secretary may scale up to Rs. 2,50,000/month.

Financial Impact

The entire economic implications applied on Fiscal Year 2016-17 has settled down to Rs. 1,02,100 crore as per expenditures recorded by Business As Usual of which Rs. 39,100 crores will be implied for payments, Rs. 29,300 crores for allowance increment and rest Rs. 33,700 crores for pensioners. The total implemented budget of Rs. 1,02,100 crores will be borne in two parts. First by General Budget amounting Rs. 73,650 crores and rest of Rs. 28,450 crores will be taken from Railway Budget.

Current Pay Structure

The total pay structure for current 7th Pay Commission will increase pay, allowances as well as pensions by 23.55% in terms of overall increment along with raise in pay individually; such as Pay will be 16% more, Allowances will be 63%, and Pension will be 24% in aggregate. The respective pay bands, as well as grade pay, would depend on newly built pay matrix which has been designed to determine the status of the employee. These include various categories mentioned below in the article.

Modified Assured Career Progression (MACP)

The performance scale has become more stringent from being “Good” to “Very Good” creating a Benchmark for MACP. Also, such scale may not be implied on those employees who are simply unable to achieve set criteria or even meet the benchmark. The annual increment shall not be granted in any manner subjected to MACP or regular promotion of its first 20 years of services.

Fixed and Annual Payment Increment

The fixed payment scale factor is being implemented on every employee by 2.57% in a uniform manner. The rate of annual payment increment will be 3% approximately.

Military Service Pay

The respective Military Service Pay will be admissible to the Defense Forces Personnel only having a compensation for various aspects. Service Officers will be paid Rs. 15,500; Nursing Officers will have Rs. 10,800; JCO/ORs will be paid Rs. 5,200 and Non-Combatants in the Air Force will be paid Rs. 3,600. Short Service Commissioned Officers can exit from Armed Forces anytime between 7 to 10 years of tenure resulting in seeking admission in the one-year executive program or M.Tech program which will be fully funded at any premier Institute.


At present, the government has decided to abolish 52 benefits referring to Risk and Hardship allowances, Siachen Allowances, house rent allowances, etc. Risk and Hardship allowances will be reviewed under newly proposed Risk and Hardship Matrix which comprises 9 cells with 1 extra cell at the top. Siachen pay will be such as Service Officers will be paid Rs. 31,500 and JCO/ORs will be paid Rs. 21,000.

Central Government Employees Group Insurance Scheme (CGEGIS)

The rates of insurance coverage under CGEGIS have been enhanced accordingly. Employees belonging to level 1 to 5 will have a monthly deduction of Rs. 1500 and an insurance amount of Rs. 15,00,000. Level 6 to 9 will have a monthly deduction Rs. 2500 with an insurance amount of Rs. 25,00,000 and those belonging to level 10 and above will have a monthly deduction of Rs. 5000 with an insurance amount of Rs. 50,00,000.

Medical Facilities for Central Government Employees

Health Insurance scheme have been implemented for central government employees. Such introduction will benefit employees as well as pensioners under CGHS for medical requirements on a cashless basis.

New Pension System

The Commission recommends an entirely revised pension formulation for civil employees, CAPF personnel as well as Defense personnel retired on or after January 1, 2016. The following would clear the difference between past pensioners and present retirees in the pay scale. As of now, past pensioners will be subject to Pay Matrix on the basis of Pay Band and Grade Pay at the time of retirement. Also, the amount shall be raised to 3%by adding the number of increments he/she had earned at that level during the service. For present retirees, 50% of the total amount shall be given as pension amount. but it may have some altercation as in it may be multiplied 2.57 times of the current pension scheme in some favorable conditions.

Compensation Amount To Next of Kin

In the case of death, Commission has revised the policy rates of lump sum payment of compensation provided to next of kin which will be related to the performance of duties. In this category, civilian personnel and CAPF, as well as Defense personnel, will be applied uniformly.

Martyr Status of CAPF or Defense Forces Personnel

In the case of death in the line of duty, they will be accorded as martyred status with compensation provided to next of kin as per Military Pay Scale rules and regulations.

Regulatory Bodies Payment Scheme

The respective Commission body have recommended a pay package for regulatory bodies. Chairpersons and Members will be paid Rs. 4,50,000 and Rs. 4,00,000 respectively. In a case of government servants, their pension will not be deducted from the total salary. The pay package might increase by 25% and allowance by 50% and for regular members of the regulatory body, replacement pay might be revised.

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