What is CPC 7th Pay Commission & Highlights?

 7th Pay Commission

For the CPC 7th Pay Commission, many of the government employees were eagerly waiting. The recommendations of the Pay Commission, there will be an increase in the salary of central government employees. To know completely about this commission follow the details here.

To make changes in the salary of the central government employees, the Government of India instituted the Pay commission.  It revises the basic pay time to time and sends the details to the government for their acceptance.  For many years the government is trying to implement the Seventh Pay commission but because of some obstacles, it was not implemented on the decided dates.  On 5th July 2019, the union budget was released. After that, the employees of the central government are eagerly waiting for the update from the seventh pay commission. Basically the update in the 7th pay will be made every six months. The increase in the DA (Dearness Allowance) is the main news related to this.

3% of the Dearness Allowances has been raised by the Government for employees in January 2019. Now they are expecting the increase of DA to 5%.

cpc 7th pay commission

7th Pay Commission Highlights-

  • CGEGIS (Central Government Employees Group Insurance Scheme).
  • Allowances on House Rent.
  • Advances.
  • Allowances.
  • MSP (Military Service Pay).
  • Annual Increment.
  • MACP Modified Assured Career Progression.
  • (WRILL) Work-Related Illness and Injury Leave.
  • DA (Dearness Allowance).
  • Recommending Maximum pay for Government Employees.
  • Recommending Minimum pay for Government employees.

CGEGIS-

It is Central Government Employees Group Insurance Scheme and the pay commission had made some changes for these employees. As shown below-

Employee level Monthly deduction presently Insurance amount in rupees present Monthly deduction recommended in rupees Insurance amount recommended in rupees
1-5 30/- 1,20,000/- 1500/- 15,00,000/-
6-9 60/- 60,000/ 2,500/- 25,00,000
10 and above 120/- 1,20,000/- 5000/- 50,00,000

 

  • House Rent Allowance

The pay commission has recommended increasing the House rent Allowances by 24% and also aiming to increase the Government employee’s basic pay.

  • Advances-

The abolishment of all the non-interest bearing advances has been made by the 7th pay commission. This was done apart from house building advances and personal computer advance. House building advance is increased from 7.5 lakhs to 25 lakhs.

  • MSP (Military Service Pay)-

For the Defence Personnel, only this MSP will be paid as it is recommended by the 7th pay Commission.  Only the military service in India is offering for the Compensations of MSP. Along with all ranks, brigadiers and same level people are paid with MSP.

  • Allowances-

Currently, there are a total of 196 allowances as examined by Cabinet. 37 retaining allowances and 51 abolished.

  • Annual Income-

An increment of 3% p.a has been suggested by the pay commission.

  • MACP Modified Assured Career Progression-

The government of India offered some services and this 7th Pay commission is aiming in improving the service quality. The MACP performance benchmarks are altered and made stricter than before as per the report. If the MACP report of the employee is low for the first 20 years they will not be able to get promotions and no annual increments will be given to the individuals who do not meet the level of their performance.

  • WRIIL- (Work-Related Illness and Injury Leave)-

The employees, who get hospitalized due to WRIIL, need to get full pays and allowances as per the recommendation of pay commissions.

  • DA (Dearness Allowances)-

As per union cabinet, more than 50 lakh central government employees and 55 lakh staffs/ pensioners will get benefits by this Act. The hike under this act is mainly focused on the central government employees. Earlier it was 5% and now it increased to 7%.

  • Pay Matrix-

As there are many issues before the grade pay structure. A new pay matrix has been recommended by the 7th pay commission. Government employee’s status will not be decided by the grade pay but it will be decided as a new pay matrix once the seventh pay commission is implemented.

  • Maximum pay recommendation for Government employees-

Maximum pay of Rs.2.25 lakhs per month for the government employees has been recommended by the 7th pay commission. Rs.2.5 lakhs per month, for the cabinet members, and even for those who are on the same level.

  • Minimum pay recommendation for Government employees-

So the minimum pay of Rs.7000/- to Rs.18,000 has been recommended by the 7th pay commission.

Calculator for 7th Pay Commission-

The pay commission affects the pension of the employee along with the salary. The individual who has been retired prior to January 1st, 2016 can be ascertained their pension with the help of the pension calculator. 7th pay commission suggested the pension fixation, whose retirement date was prior to January 1st, 2016.