14 Highlights of 7th Pay Commission’s recommendations


The 7th Pay Commission on Thursday recommended a 16-percent salary hike for government servants with an estimated 47 lakh serving central government employees and 52 lakh pensioners expected to benefit from the recommendations.

It also recommended ‘One Rank One Pension’ (OROP) for all employees, including defence personnel and civilian government employees, retiring before January 1 next year.

“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,” read an official statement.

“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,” it said.

The statement further added: “In the case of defence forces personnel, this amount will include military service pay as admissible.”

Following are some of the highlights:

. A 16-percent salary hike recommended

. A 24-percent hike in pension, besides a minimum pay of Rs.18,000 per month for all entry-level employees

. Rs.2.5 lakh for the seniormost serving officer, the cabinet secretary.

. Increase in pay will be 16 percent, increase in allowances will be 63 percent

. Annual increment of 3 percent recommended

. An estimated 47 lakh serving central government employees and 52 lakh pensioners will be impacted

. Proposals will entail an outflow of Rs.102,100 crore from the exchequer during the next fiscal

. One rank one pension proposal recommended for all employees, including the defence personnel, retiring before January 1 next year

. Rate of house rent allowance be revised to 27 percent, 18 percent and 9 percent when dearness allowance crosses 50 percent, and to 30 percent, 20 percent and 10 percent when it crosses 100 percent

. House building advance ceiling proposed at Rs.25 lakh against Rs.7.5 lakh.

. Health insurance scheme for central government employees and pensioners h

. Ceiling of gratuity recommended at a higher rate of Rs.20 lakh, against Rs.10 lakh.

. For defence personnel, against the existing pay of Rs.6,000 per month for service officers, the proposal is for Rs.15,500.

. Performance-related pay for all categories of central government employees