To adjust the salaries of government employees according to the economic condition of India, the government have made The 7th Pay Commission. AK Mathur was the head of the seventh Pay Commission which was initiated in January 2016. The pay commission reported a hike of 23.55% rate in the pay and allowances of employees. The government employees are satisfied with the proposal.
1. 7th Pay Commission latest Updates
More than 23 Lakh Pensioners to Get Benefit of up to Rs. 18,000
This decision was made by the government keeping in mind about the teaching and non-teaching staffs of central and state universities. At least 25,000 pensioners will be benefited from this decision. These pensioners will be from Universities which are University Grant Commission (UGC) granted. 8 lakh and 15 lakh non-teaching staff retired from universities will also be benefited from the decision taken.
House Rent Allowance (HRA) Structure has Impacted Inflation
According to a research paper by RBI’s department on monetary policy. The increase in-house rental allowance for central government employees recommended by under the 7th central pay commission has impacted the Consumer Price Index (CPI) inflation by nearly 35 basis points at its peak. Consumer Price Index (CPI) is a method that studies the weighted average of prices of a range of consumer goods and services, such as food, transportation, medical care and many more. It is calculated by taking into account price variations for each item in the predetermined range of goods and taking an average of them.
Railway Employees to reap new benefits
For the first time Leave Travel Concession (LTC) can be used by railway employees. Previously people related to Indian Railways were not given LTC as they were availed to “Free Pass”.
Central Government Employees to Receive Revised Allowances
With a little lowered HRA and increase in basic 25 percent, Government employees are now privileged like never before. The committee first reviewed the proposal came to a logical conclusion and submitted it to the Finance Minister.
Revised Allowance for Government Staff
It is estimated that Government will start giving to 4.9 million in accordance with the 7th Pay Commission the allowance which is finalized. The finalized 7th Pay Commission’s revised plan consists of- HRA, accidental allowance, outstation detention allowance, trip allowance and ghat allowance. The 7th Pay Commission’s 53 allowances which were thought to be less important was asked to abolish and add 36 allowances which are more necessary out of the 196 allowances available. The Lavasa committee which revised all of these is waiting for the feedback of respective ministries.
2. Recommendations to follow for the 7th Pay Commission
Reduced pay for government employees
The minimum pay of a new government employee should be at least Rs. 18,000 per month. Whereas for a class I officer, the minimum salary is only Rs. 56,100 per month at the moment.
Increased pay for government employees
It is recommended in the 7th Pay Commission to increase the highest pay for government employees to Rs.2.5 lakhs for government employees who are at the scale of Cabinet Secretary.
A new Pay Matrix will be made to implement the 7th Pay Commission to adjust the new salary of the Government employees. The previous matrix will be set aside while the new matrix is used for the 7th Pay Commission.
Latest Pay Structure
The New Pay Structure has all existing levels in the pay matrix which do not contradict with any other structure and it is precise.
3. Summary of the 7th Pay Commission
- A 2.57% increase on the basics of Government employees as per the new pay matrix and pay scale. The salary has been doubled for the government employees which is satisfying for all employees.
- The revised basic salary range will begin from Rs. 18,000(Which was previously 7,000). The highest positions in the government job will be paid a scale of Rs.2.5 lakh as introduced in the 7th Pay Commission. Than again, House Rent Allowance (HRA) would increase up to 27%, 18%, and 9%.
- At a 3% annual increment will be given for all employees
- The Pay Matrix is a matrix showing the status of Government employee in an office and it will be used instead of earlier pay grade standard.
- The maximum wages have been raised to a satisfactory amount for all Government employees. The highest scale employees will be paid an increased amount of Rs.2.25 lakh monthly the highest salary paid will be Rs.2.5 lakh.
- The pay matrices for employees/ personnel of the defense and other forces begin at a minimum payable wage of Rs. 21,700 and a maximum of Rs. 2,50,000. This structure has been determined and established by the
- Indian Finance minister has determined the structure of the new pay matrix for all defense personnel as minimum payable wage Rs. 21,700 and maximum Rs. 2,50,000.
- These changes in Matrix, Payment and Allowances etc. will affect the overall economic condition of the country. As a result, Government will carefully handle the whole Budget to an amount of Rs. 73,650 Crore.
4. How do you calculate the 7th Pay Commission
One can calculate their salary according to the new 7th Pay Commission by using the calculator provided following these 3 easy steps:
Step 1: Enter the Basic Pay along with your Pay Band and Grade pay.
Step 2: Select your transport allowance, location along with the percentage of your current house rent allowance (HRA).
Step3: Select the Calculate button.
The changes in 7th Pay Commission will take place in August 2018. This will affect salaries, remunerations, and allowances. The new salary will be paid by August after taking place. There are still questions on employees’ arrears that will be discharged or given in any other ways.
The government has hiked the salaries of these employees since 2016 by considering the growth rate of inflation. In response to which the employees said that the salary hike was not good enough to meet the increasing living costs and requested the government to revise the Salary structure after which the 7th pay commission was initiated. Government employees are satisfied by the proposal made by the 7th Pay Commission and hopes that will be granted and implemented by the time estimated by the Government.
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