Recommendations of 7th Pay Commission: Main points to know
New Delhi, July 3: During last week, the Union Cabinet headed by Prime Minister Narendra Modi has approved the recommendations of 7th Pay Commission with certain alterations. The revised policies are in practical from July 1st, 2017. Here is some updated information on the impact of the 7th Central Pay Commission:
1. Minimum salary of a central government employee is increased from the present Rs.7000 per month to Rs.18000 per month and maximum pay that is of the cabinet secretaries is hiked from the current Rs.2.25 to Rs.2.5 lakhs.
2. The revised rates of the allowances will affect more than 48 lakhs of central government employees and 53 lakh pensioners. 14 lakh employees and 18 lakh pensioners are from the defence forces.
3. The 7th Pay Commission has recommended a reduction in the existing rates of HRA from 30%, 20%, 10% to 24% for category X, 16% for Category Y and 8% for Category Z of cities. However, HRA is subject to change in two phases when DA crosses 50% and 100%: i) When DA crosses 50%: HRA will be revised to 27%, 18%, 9% respectively. ii) When DA crosses 100%: HRA will be revised to 30%, 20%, 10% respectively.
4. The revision in TA rates has disappointed Level 1 and Level 2 employees. It is expected that they will be losing around Rs. 2372/- when switching to new Transport Allowance rates of 7th CPC. There has been a marginal decrease for Level 3 & 4 employees.
5. Siachen allowance will be more than twice the existing rates. It will benefit the Indian Army personnel posted in harsh conditions of Siachen. The level 8 and below army soldiers will get Rs.30,000/- per month while Level 9 and above army officers will get Rs.42,500/- as Siachen Allowance.
6. The areas under TLA (Tough Location Allowance) are divided into 3 categories and rates will be based on R& ;H (Risk & Hardship) matrix.