When the recommendations of the 7th Pay Commission will be implemented in 2018, pensioners will be the biggest beneficiaries. Where the pay scale under the 7th Pay Commission for the serving employers will increase by 16%, pensioners will see a rise of 24% increase in their income. However, allowances will witness the biggest rise by approximately 63%. The pay matrix of the 7th Pay Commission is simple to understand and predictable by being transparent. The government employees that are coming directly under the purview of the 7th Pay Commission have kept forth their demands.
A pay commission is an administrative system set up by the government to determine the salaries of the government employees. The Central Government constitutes a pay commission once in every decade to revise the pay structure of the employees. Each pay commission has a ToR, that is the term of reference, apart from revising the salary. These pay commissions also decide payments made to the pensioners.
The ToR of 7th Pay Commission stated that the salaries of the central government employees will be revised on the basis of the rationalisation and simplification of the salary structures and the specialised needs of different departments.
Before knowing about the recommendations and other details of the 7th Pay Commission, let us quickly skim through the earlier six pay commissions.
All the people working in the civil services of the central government and the people who are paid salaries from the ‘Consolidated Fund of India’ that is, from the account in which the government collects the revenues, are the central government employees as per the 7th Pay Commission.
|Existing Pay Bands||Existing Grade Pay Levels||Available for||New Pay Levels|
|PB-3||5400||C, D, M||10|
|6600||C, D, M||11|
|Cabinet Secretary, Defence Chiefs||18|
All the demands mentioned above have been included in the 7th Pay Commission pay matrix where the grade pay has been considered, and the levels have been rationalised.
Let us look at the highlights of the 7th pay commission
The revision of the 7th Pay Commission is required for the rising cost of living and the pay matrix introduced has been nothing but a blessing in disguise.
The arrears on salary are paid to the central government employees after the implementation of the recommendations made in the CPC. The arrears will be calculated from the time the recommendations have been implemented till the time when the employees actually get the revised salary.
There are certain advantages and disadvantages that the 7th Pay Commission recommendation will have on the market and economy.
Let us check the benefits first
Like every coin has two sides, 7th pay commission also has some disadvantages that will impact the market and economy.
7th Pay Commission, like all the previous pay commissions, is good news for central government employees and pensioners and they are waiting eagerly for the implementation of the pay matrix.
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