7th Pay Commission to benefit new recruits and pensioners

New Delhi: Newly recruited and retiring central government employees will be benefitted the most under the 7th Pay Commission award.

The newly-recruited central government employees from Assistant to Group `A’ officer will benefit the most.

An Assistant in field office now starts his career with basic salary of Rs 13,500 ( Pay Band Rs 9,300 + Grade Pay Rs 4,200), after implementation of the 7th Pay Commission, he will be able to start his career with basic salary of Rs 35,400 and a Group `A’ officer will join in central civil service with basic salary of Rs 56,100, who currently to get Rs 21,000 ( Pay Band Rs 15,600 + Grade Pay Rs 5,400).

Accordingly, newly recruited from Assistant to Group `A’ officer will get pay hike 262 percent to 267 percent, while the pay commission recommended uniformly pay hike 257 percent to all current central government employees.

The pay commission disappointed over entry pay of the lowest functionary, the lowest pay at entry level of Group `C’ has been recommended pay of Rs 18,000 from the entry pay of the lowest functionary now Rs 7,000 ( Pay Band Rs 5,200 + Grade Pay Rs 1,800).

It shows that he entry pay of the lowest functionary will be hiked 257 percent only and a Group `A’ officer entering the central government on direct recruitment basis gets more than three times the pay drawn by a Group `C’ lowest functionary at their entry level.

Pension for central government employees has been recommended to raise to 24% while the basic salary has been recommended to increase 16%.

In such a situation, pensioners would be the biggest gainers from the pay commission award, which starts next year, January 1.

According to the 7th Pay Commission recommendations, a virtual one rank one pension (OROP) structure for central government pensioners, bringing in parity between past and existing pensioners.

The past pensioners shall first be fixed in the new pay matrix which has been suggested in place of pay band and grade pay at which they retired, at the minimum of the corresponding level in the pay matrix. This amount shall then be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 per cent. Fifty percent of the total amount so arrived at shall be the new pension.

An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension. The pensioner will get the higher of the two.

The Commission also recommended for pensioners residing outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS (MA) for catering to the medical requirement of these pensioners on a cashless basis under new Health Insurance Scheme for Central Government employees and pensioners, which has been introduced by the commission.

Despite bringing an overall positive psychological impact among the pensioners, the 7th Pay Commission recommendations could not please current central government employees.