9 Key points you must know about the 7th Pay Commission

The Ministry of Finance has prepared its recommendations for the Seventh Pay Commission. The announcement of changes has been done and the ministry will implement them from January 1, 2016. The deadline of preparation was initially scheduled for August but was later extended to December this year.


The Government of India makes some changes to its financial module every 10 years. This time, Justice A. K. Mathur led the team of experts who prepared the recommendations. The commission is said to increase benefits for the central government employees. However, there are some provisions that may not go down well for the staff, as there is news of a scheme of salary deduction.


Here are 9 key points you must know about the Seventh Pay Commission:


1. Around 48 lakh central government employees and 55 lakh pensioners will benefit from the Seventh Pay Commission.


2. The Pay Commission was set up by the UPA government during its regime. The recent changes have come under the influence of the NDA government.


3. Former IAS officer Vivek Rae, economist Rathin Roy and Commission secretary Meena Agarwal are members of the commission among others.


4. The salaries of IPS and IRS officers will get at par with that of IAS officers under the new commission.


5. In order to cut down parity, the number of pay bands will be reduced. At present, there are 32 pay bands, which will reduce to 13.


6. The central government’s salary bill will rise by 9.5 percent to Rs 1,00,619 crore after the commission takes effect.


7. Under the pay commission, the government can cut down salaries of the ‘underperforming’ central government by 5 to 6 percent.


8. The duration of service will also be reduced to 55 years of age or 33 years of service.


9. The Seventh Pay Commission is said to increase basic salaries by 30 to 40 percent. The basic salary set in the First Pay Commission was Rs 35 per month.

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