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7th Pay Commission Latest News for Defense | Company Vakil

The government has issued the 7th pay commission latest news for defense. The 7th pay commission has been organized by the UPA Government by Manmohan Singh on February 28, 2014. It was chaired by the Justice Chairmanship, Ashok Kuman Mathur. SMT Meena Agarwal (Administrative Expert), Dr. Rathin Roy (Director NIPFP, economist) and Shri Vivek Rane (IAS) were selected as the other members of the pay commission as Secretary. On November 19, 2025, the 7th Pay Commission has submitted their report. The recommendations had been put into effect on January 1, 2016.

The Pay Commission is a type of administrative mechanism or system provided by the Government of India to text, examine, and recommend the necessary and achievable changes to the salary structure of the employees of the government working in several departments, services and agencies. It includes allowance, pay, bonus, and many other benefits or facilities mainly in cash. The departments and services falling under the Pay Commission are:

  • Employees of both industrial and non-industrial Central Government
  • Personnel that belongs to the All India Services
  • Personnel belonging to the Union Territories
  • Employees and Officers belonging to the Indian Audit and Accounts Department
  • Members who belong to the Regulatory bodies (with the exception of the RBI) are comprised under the Acts of the Parliament
  • Employees and Officers belonging to the Supreme Court
  • Personnel which belongs to the Defense Forces

In order to put forward its recommendations, each pay commission examines different aspects which includes monetary resources of the government, economic stance of the country, plausible impact on financing of the State Governments, collation of the private sector, public sector and the pay structure of the state government, best universal practices and their ability to adapt and remain relevant to the Indian regulations and so on.

The headquarters of the Pay Commission has been located in Delhi, India. The time allotted to the Pay Commission to make their submission is 18 months and it has to submit its recommendation through the report starting from the date of the constitution. The duty of considering to send an interim report on any matter is vested with the Pay Commission after the finalization of the recommendations. The Government has all the power to either reject or accept the recommendations which the Pay Commission made. After making some specific modifications in the recommendations given by the commission, the State Government normally adopts them. The highest of the commission is that of a Chairman and consists of other members who are expert and experienced officials from several departments.

So far in after the independence of India, a total of seven pay commissions have been organized in order to re-examine and recommend the changes to salary structures of both the defense and civil personnel of the government, with the 7th pay Commission Latest News for Defense. Usually, such events are organized after every decade.

 

Pay Commission Event Important Notes
First Pay Commission ·       Shri Srinivasa Varadacharia acted as the Chairperson of this event

·       Organized in January 1946

·       Report submission done in May 1947

·      The Basic idea behind this had been “living wages” for the employees

·       The minimum wage fixed by the Commission had been Rs 55, where Rs 30 added to Rs 25, acting as Dearness Allowance (DA)

Second Pay Commission ·       Shri Jaganath Das acted as the Chairperson of this event

·       Organized in August 1957

·       Report submission done within 2 years

·       Recommendation of Rs 80 as minimum wage had been selected

·       Revised pay scales were organized by merging about 50% of the Dearness Allowance

·       Hence, the minimum payment of Rs 70 and DA of about Rs 10 was done

Third Pay Commission ·       Shri Raghubir Dayal acted as the Chairperson of this event

·       Organized in April 1970

·       Report Submission done in March 1973

·       Minimum salary fixed for each month was Rs 185

·       Later on, the government made a few modifications of the recommendations

·       Views of the employees were taken into consideration

·       The wage was increased to Rs 196 each month after that

Fourth Pay Commission ·       Shri P N Singhal acted as the Chairperson of this event

·       Organized in June 1983

·       Report submission had been done over a time frame of 4 years in three distinct phases

·       Recommendation to constitute a machinery, permanent in nature, in order to look over the time to time review of the salary and allowances of the employees of the Central Government

·       It was not made to work

Fifth Pay Commission ·       Justice S Ratnavel Pandian acted as the Chairperson of this event

·       Organized in June 1994

·       Report submission had been done in January 1997

·       Pay structure had been drastically raised to Rs 2550 from Rs 750

·       Reduction in the number of pay scales was recommended

Sixth Pay Commission ·       Justice B N Srikrishna acted as the Chairperson of this event

·       Organized in July 2006

·       Report submission had been done in March 2008

·       In order to eradicate stagnation, the introduction of running pay bands were done

·       Two types of pay bands were introduced

·       The minimum wage for entry-level pay band was Rs 7000

·       The maximum salary for secretariat or such equivalent had been Rs 80,000

7th pay commission latest news for defense followed the following approach

  • Holistic Approach had been followed according to the panel during the finalization of the levels of payments, allowances, salaries and other such prerequisites of the structure of compensation.
  • Among various other researches, the following three studies were commissioned by the panel and vested on the specialists. These are:
  • The research conducted by IIM, Ahmedabad, in order to comprehend the nature and quantity of the overall compensation of the selected job profiles in the sector of the government in relation to the similarly put profiles found in the CPSUs as well as the private sector
  • The research done by the Institute of Defense Studies and the analysis of nature, quantity and the components of the defense and its expenditure as well as the pension of the defense personnel
  • The research conducted by the IIM, Kolkata on the budgetary implications of the enactment and application of the V and VI CPC on the monetization of the State and Union Governments
  • According to the report of the panel, the new structure of the payment has been formed broadly as a layered and open-ended matrix system for the ordinary civilians as well as the armed personnel of the defense. The main focus of the report was to ensure that no person remain stagnant in one place. Rather everyone has to be provided with a fair opportunity in order to progress by the use of one’s own intellect and merit. It is also kept in mind that frustration does not consume the individual and they can secure better allowances
  • The goal of this event was to connect merit with proper allowance. It is true that the pay structure fails to keep track with the forces of the market but it was assured that it not that disappointing that the proper talented person fails to beget attracted to the government services

The Main Focus of the 7th pay commission latest news for defense

  • Maximum wage: Increment up to Rs 225,500 per month in the level of the secretariat or equivalent at entry level has been set up at the maximum wage for Apex Scale. For Cabinet Secretary and other equivalents, the pay scale of Rs 250,000 has been set up per month
  • Minimum wage: Increment up to Rs 18,000 per month from Rs 7,000 has been passed into the entry level as the minimum salary. If the newly recruited officer belongs Class 1, he will be given the minimum salary of Rs 56,100 per month
  • Annual Increment: 3% is considered as the annual increment rate
  • Fitment Factor: A uniform application of the fitment factor at 2.57 has been proposed for all the employees
  • New Structure: Dismissal of the present system for pay bands and also the grade pay has been done. Introduction of a new matrix of payment has been designed. In the pay structure, the grade pay has already been subsumed. The status obtained by the employee has been appointed to by the pay of grade and now will be calculated by the level put in the pay matrix.
  • Military Service Pay: Previously, the Military Service Pay was allotted to all the ranks up to and including the Brigadiers and such equivalents. However, after the 7th pay commission, MSP can only be applied to the forces related to defense personnel. MSP is treated as a form of compensation allotted for the military service and therefore, a recommendation to enhance the MSP for several categories have been made.
  • MACP or Modified Assured Career Progression: The benchmark of performance for the MACP has been limited at “very good”. A proposal was recommended so that no yearly increment had been made to the employees who did not meet the benchmark. It is applicable for MACP as well as for a normal promotion within the first 20 years into their service. The Officers commissioned with Short Service will have the opportunity to receive additional benefits
  • Cadre Review: Systematic alterations in the review process of the Cadre of Group-A category officers are recommended.
  • Allowance: A recommendation to eradicate 52 allowances were made with an additional of 36 allowances already being removed as separate identities. However, they were subsumed probably in an already existing allowance or a brand newly proposed allowance. A recommendation was made, however, to make increment regarding the House Rent Allowance (HRA), since there is an increment in the regular pay and to further make an increment on the basis of change made in DA.
  • Advance: Excluding advance regarding personal computer, all the other interest and non-interest bearing advances as well as the House Building Advance, simply HBA, is made to be eradicated. After the revision of HBA ceiling, it was increased from Rs 7.5 lakhs to Rs. 25 lakhs.
  • Medical Facility: the Special medical facility for the defense personnel has been introduced. This included the Scheme of Health Insurance for the pensioners and employees of Central Government. It also covers the postal pensioners maintained under the CGHS and helps to merge the dispensaries of the postal with CGHS.
  • Central Government Employee Group Insurance Scheme (CGEGIS): Rates related to contribution and the coverage of insurance falling under the CGEGIS
  • Pension: A revised formulation for pension allotted to the civil employees with the inclusion of CAPF or Central Armed Police Forces personnel as well as the personnel of defense, who had retired before January 1, 2016
  • Gratuity: An increment to Rs 20 lakh to Rs 10 lakh for the ceiling of gratuity has been made. The raise for the ceiling of gratuity may have been 25% whereas the DA is about 50%
  • New Pension System (NPS): Following the many receptions of grievances related to NPS, a bunch of steps in order to improve the functions of NPS has been recommended. It has also established a redressing mechanism for a strong grievance
  • Performance-based Payment Mechanism: Performance Related Pay also known as PRP has been introduced with the inclusion of the existing bonus, a scheme for all the departments of the Central Government employees. The basis for this scheme includes the quality Results Framework Documents, the reformed Annual Performance Appraisal Reports and other vast guidelines as recommended
  • Pension-related to Disability for the Armed Forces: A recommendation for introducing a system based on the slab for the disability pension regime was made. It was offered based on the percentage of the disability pension regime.

The government has made sure to implement the provided recommendations during the 7th pay commission latest news for the defense. It makes an inclusion for those who are affected during their service in the defense forces but with slight alterations made on September 5, 2016. For example, increment made in the contribution for CGEGIS had been declined. But on the other side, the Cabinet had vested the ministry with the important task of working out an insurance scheme of a customized group for the employees of the Central Government with a very low premium and a cover for high risk.

An increment of 2% for the Dearness Allowance of the Central Government had been made by the Government of India on March 7, 2018, with regards to the formula accepted on the basis of the recommendation done during the 7th pay Commission report.

The Government was expected to raise the salary and the fitment factor crossing the 7th Pay Commission related report. The employees are in a demand of a raise of fitment factor to 3 instead of 2.57 times, in order to raise the minimum basic wage from Rs 18,000 to Rs 21,000. These were the main highlights of the recommendations during the 7th pay commission latest news for the defense.

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