8th Pay Commission: Major Highlights Of 7th CPC Likely To Impact Recommendations This Time Around

From fitment factor to salary enhancement --both minimum and maximum limit --the recommendation of 8th Pay Commission will be keenly awaited by the central government employees and pensioners. The recommendation of the 8th Pay Commission which will result in revision of salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners. Here are the major highlights of the 7th Pay Commission that is likely to impact 8th Pay Commission.

7th Pay Commission Recommended Date of implementation: 01.01.2016 7th Pay Commission Minimum Pay: Based on the Aykroyd formula, the minimum pay in government was recommended to be set at Rs 18,000 per month. 7th Pay Commission Maximum Pay: Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level.

New Pay Structure: Considering the issues raised regarding the Grade Pay structure and with a view to bring in greater transparency, 7th Pay Commission recommended that the present system of pay bands and grade pay has been dispensed with and a new pay matrix has been designed. Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix, recommended the 7th Pay Commission.

Fitment: A fitment factor of 2.57 was proposed to be applied uniformly for all employees by the 7th Pay Commission. Annual Increment: 7th Pay Commission retained the rate of annual increment at 3 percent.

House Rent Allowance: Since the Basic Pay has been revised upwards, the 7th Pay Commission recommended that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

Central Government Employees Group Insurance Scheme (CGEGIS): The Rates of contribution as also the insurance coverage under the CGEGIS have remained unchanged for long, said 7th Pay Commission. It recommended an enhancement suitably. 7th Pay Commission recommended revision of insurance amount from Rs 30,000 to Rs 15,00,000 for 1 to 5 employee level; Rs 60,000 to Rs 25,00,000 for 6 to 9 employee level; and 1,20,000 to 50,00,000 for 10 and above employee level.

Performance Related Pay: The Commission had recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes.

Pension: The Commission recommended a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement.

The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix. This amount shall 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 percent.