The Union cabinet is predicted to take in on Wednesday the Empowered Committee of Secretaries’sdocument at the 7th Pay commission.
The recommended date of implementation is January 1, 2016. So, government employees gets arrears from January this year.
minimum Pay based at the Aykroyd formulation: The minimal pay in authorities is suggested to be set at Rs 18,000 in keeping with month.
maximum Pay Rs 2,25,000 according to month for Apex Scale and Rs 2,50,000 per month for cabinetSecretary and others currently at the same pay stage.
what’s the new Pay structure? the prevailing machine of pay bands and grade pay has been allotted with and a new pay matrix has been designed. Grade Pay has been subsumed within the pay matrix. The fameof the employee, hitherto decided by grade pay, will now be determined via the level in the pay matrix.
What are the financial implications? the whole financial impact in the FY 2016-17 is likely to be Rs 1,02,a hundred crore, over the expenditure as according to the business As common scenario. Of this, theboom in pay might be Rs 39,one hundred crore, boom in allowances could be Rs 29,three hundred crore and increase in pension would be Rs 33,seven hundred crore.
Gratuity: Enhancement in the ceiling of gratuity from the present Rs 10 lakh to Rs 20 lakh. The ceiling on gratuity can be raised by way of 25 percentage whenever DA rises through 50 percent.
house hire Allowance: The commission recommends that HRA be paid at the fee of 24 percent, 16percent and eight according to cent of the new primary Pay for sophistication X, Y and Z townsrespectively. The commission additionally recommends that the price of HRA can be revised to 27 in keeping with cent, 18 percent and nine percentage respectively while DA crosses 50 percent, and furtherrevised to 30 percentage, 20 consistent with cent and 10 consistent with cent whilst DA crosses a hundred consistent with cent.
Allowances: The fee has recommended abolishing fifty two allowances altogether. another 36 allowanceshad been abolished as separate identities, however subsumed either in an present allowance or in newly proposed allowances. Allowances relating to risk and worry could be governed by means of the proposedrisk and complication Matrix.
Pension: The past pensioners shall first be constant inside the Pay Matrix being recommended throughthe commission on the premise of Pay Band and Grade Pay at which they retired, at the minimal of the corresponding level within the pay matrix. This amount will be raised to reach on the notional pay of retirees, with the aid of adding wide variety of increments he/she had earned in that degree at the same time as in carrier at the price of three percentage.
