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10 points to know about Seventh pay scale recommendation

Central government employees got a huge gift from the 7th Pay Commission report which recommended on Thursday a 23.55% per cent jump in their salary and allowances. The 7th Pay Commission is headed by Justice A K Mathur and the other members of the commission are Vivek Rae, a retired IAS officer of 1978 batch, and Rathin Roy, an economist. Meena Agarwal is secretary of the commission. The central government constitutes the pay commission every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications. The Pay Commission was set up by the UPA government in February 2014 to revise remuneration of about 48 lakh central government employees and 55 lakh pensioners. 

Following are the highlights of the recommendations made by the 7th Pay Commission report, which was submitted to Finance Minister Arun Jaitley on Thursday:

1. 7th Pay Commission: 23.55 per cent increase in pay and allowances recommended
(*Recommendations to be implemented from January 1, 2016)

2. 7th Pay Commission: Minimum pay fixed at Rs 18,000 per month; maximum pay at Rs 2.25 lakh.

3. 7th Pay Commission: The rate of annual increment retained at 3per cent.

4. 7th Pay Commission: One Rank One Pension proposed for civilian government employees on line of OROP for armed forces.
7th pay scale recommendations report

5.  7th Pay Commission: Ceiling of gratuity enhanced from Rs 10 lakh to Rs 20 lakh; ceiling on gratuity to be raised by 25 per cent whenever DA rises by 50 per cent.

6. 7th Pay Commission: Cabinet Secretary to get Rs 2.5 lakh as against Rs 90,000 per month pay band currently. 

7. 7th Pay Commission: Financial impact of implementing recommendations in toto will be Rs 1.02 lakh crore - Rs 73,650 crore to be borne by Central Budget and Rs 28,450 crore by Railway Budget.

8.  7th Pay Commission: Total impact of Commission's recommendation to raise the ratio of expenditure on salary and wages to GDP by 0.65 percentage points to 0.7 per cent.

9. 7th Pay Commission: Military Service Pay (MSP), which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only

10. 7th Pay Commission: MSP for service officers more than doubled to Rs 15,500 per month from Rs 6,000 currently; for nursing officers to Rs 10,800 from Rs 4,200; for JCO/ORs to Rs 5,200 from Rs 2,000 and for non-combatants to Rs 3,600 from Rs 1,000; Short service commissioned officers will be allowed to exit the armed forces at any point in time between 7 to 10 years of service
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  1. It is indeed a hefty pay revision and wish I was a Government employee!