The 7th Pay Commission’s recommendations are set to be implemented by the Central Government after the Cabinet cleared the recommendations more than six months ago. While the recommendations will benefit an estimated 47 lakh central government employees and 53 lakh pensioners which include 14 lakh serving employees and 18 lakh pensioners in defence forces, the recommendations are far from agreed upon. There are still long hours to be spent in calculating the fiscal liabilities of the central and the state governments which will have to bear the brunt. We have prepared a compendium of the confirmed facts we have received till now regarding this very important and sensitive issue.

Indian-curency-7th-CPC
Awaited with baited breath: the implementation of the 7th Pay Commission’s recommendations
  1. The minimum revised pay of a Central government employee now stands at Rs 18,000 when compared to the Rs 7,000 per month which existed earlier. At the top echelons, a cabinet secretary can now draw up to Rs 2.5 lakh per month which is a two and a half times increase from the existing Rs 90,000 before the 7th Pay Commission Recommendations.
  2. The Centre has also asked the states to state their intentions of implementing the recommendations of the Commission by March. All states which have not yet agreed on implying their recommendations but are still moving ahead with the new norms will be helped by the central government as well. The government issued a notice of bearing at least 30% of the fiscal liability aroused due to pay hike as per the recommendations. The full report can be viewed here.
  3. The Finance Ministry has recently clarified that the pay scale revisions in accordance with the recommendations will not directly apply to the country’s autonomous organisations and has gone on to state that the revision in pay scales of employees of such institutions will be revised to reflect a minimal burden on the exchequer. Since autonomous institutions are not controlled by the Union government, they are known to function independently and with minimal external interference.
  4. The National Federation of Indian Railwaymen, or NFIR, has recently written to the Prime Minister seeking his intervention in the implementation of the 7th Pay Commission’s recommendations. The federation had earlier called off their planned indefinite strike they had called in June last year after several senior union ministers assured them that the recommendations would soon be implemented.
  5. In keeping with the Model Code of Conduct implemented by the Election Commission after the poll dates for the five states were declared, all higher allowances are now supposed to be paid only after the results are declared on March 11. This development comes in the face of widespread criticism from nearly all opposition parties after the government decided to present the Union Budget on February 1, days before the polls are to start. You can view the full report here.
  6. Demonetisation might just be a blessing in disguise for the government. The massive amount of funds that the government has recouped post the November 8 move will help in implementing the recommendations. However, the Low-Paid Employees Federation (LPEF) has sought implementation of the CPC’s recommendations faster and has asked for the revision of minimum daily wages, medical allowances and regularisation of contractual and short-term employees.
  7. A recent notification has said there will be two dates for grants of increment, January 1 and July 1 of each year. The July 1 date will replace the existing single date of July 1. However, all employees will be entitled to only one annual increment on either of these two dates. This will depend on the date of appointment, promotion, increment or performance.
  8. The Ministry of Defence, earlier this month, made a report in light of the complaints filed by the Defence Civilian Employees’ Federation which clarifies the misinterpretation of the provisions leading to incorrect pay fixation set for Central Civil Services under the Revised Pay Rules 2016.The report suggested a series of anomalies which apparently emerged from the Accounting Authorities of the Defence Estates.
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