1. 7th Pay Commission pension, pay scales, allowances – Minimum Pay:
Based on the Dr
Wallace Aykroyd formula (nutrition) , the minimum pay (salary) in government is
recommended to be set at Rs 18,000 per month; Maximum Pay: Rs 2,25,000 per
month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others
presently at the same pay level. If passed, the salary hikes this report is
recommending are likely to boost demand for consumer goods across the spectrum,
even though it could also be inflationary. (Reuters)
2. 7th Pay Commission pension, pay scales, allowances –
Advances:
a. All non-interest
bearing Advances have been abolished; b. Regarding interest-bearing Advances,
only Personal Computer Advance and House Building Advance (HBA) have been
retained. HBA ceiling has been increased to Rs 25 lakhs from the present Rs 7.5
lakhs. (PTI)
3. 7th Pay Commission pension, pay scales, allowances –
Pension:
The Commission
recommends a revised pension formulation for civil employees including CAPF
personnel as well as for Defence personnel, who have retired before 01.01.2016.
This formulation will bring about parity between past pensioners and current
retirees for the same length of service in the pay scale at the time of
retirement. The 7th Pay Commission received many grievances relating to New
Pension System (NPS). It has recommended a number of steps to improve the
functioning of NPS. It has also recommended establishment of a strong grievance
redressal mechanism. (PTI)
4. 7th Pay Commission pension, pay scales, allowances –
Performance Related Pay:
The Commission has
recommended introduction of the Performance Related Pay (PRP) for all
categories of Central Government employees, based on quality Results Framework
Documents, reformed Annual Performance Appraisal Reports and some other broad
Guidelines. The Commission has also recommended that the PRP should subsume the
existing Bonus schemes. (PTI)
5. 7th Pay Commission pension, pay scales, allowances – New Pay
Structure:
Considering the issues
raised regarding the Grade Pay structure and with a view to bring in greater
transparency, the present system of pay bands and grade pay has been dispensed
with and a new pay matrix has been designed. Grade Pay has been subsumed in the
pay matrix. The status of the employee, hitherto determined by grade pay, will
now be determined by the level in the pay matrix. The rate of Annual Increment is
being retained at 3 percent. (PTI)
6. 7th Pay Commission pension, pay scales, allowances – Modified
Assured Career Progression (MACP):
a. Performance
benchmarks for MACP have been made more stringent from “Good” to “Very Good”;
b. The Commission has also proposed that annual increments not be granted in
the case of those employees who are not able to meet the benchmark either for
MACP or for a regular promotion in the first 20 years of their service; c. No
other changes in MACP recommended. (Thinkstock)
7. 7th Pay Commission pension, pay scales, allowances – Military
Service Pay (MSP):
The Military Service
Pay, which is a compensation for the various aspects of military service, will
be admissible to the Defence forces personnel only. As before, Military Service
Pay will be payable to all ranks up to and inclusive of Brigadiers and their
equivalents. The current MSP per month and the revised rates recommended are as
follows: (Reuters)
8. 7th Pay Commission pension, pay scales, allowances – Short
Service Commissioned Officers:
Short Service
Commissioned Officers will be allowed to exit the Armed Forces at any point in
time between 7 and 10 years of service, with a terminal gratuity equivalent of
10.5 months of reckonable emoluments. The Seventh Pay Commission also says they
will further be entitled to a fully funded one year Executive Programme or a
M.Tech. programme at a premier Institute to better their prospects in later
life. (PTI)
9. 7th Pay Commission pension, pay scales, allowances –
Allowances:
The Commission has
recommended abolishing 52 allowances altogether. Another 36 allowances have
been abolished as separate identities, but subsumed either in an existing
allowance or in newly proposed allowances. Allowances relating to Risk and
Hardship will be governed by the proposed Risk and Hardship Matrix. a. Risk and
Hardship Allowance: Allowances relating to Risk and Hardship will be governed
by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell
at the top, viz., RH-Max to include Siachen Allowance. (PTI)
10. 7th Pay Commission pension, pay scales, allowances – Financial
Implications:
The total financial
impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, over the
expenditure as per the “Business As Usual” scenario. Of this, the increase in
pay would be Rs 39,100 crore, increase in allowances would be Rs 29,300 crore
and increase in pension would be Rs 33,700 crore. In percentage terms the
overall increase in pay & allowances and pensions over the “Business As
Usual” scenario will be 23.55 percent. Within this, the increase in pay will be
16 percent, increase in allowances will be 63 percent, and increase in pension
would be 24 percent. (Image by PTI)
Source: financialexpress.com
