7th Pay Commission Latest News Cabinet Report June 2016

7th Pay Commission Latest News Cabinet  Report June 2016

The Seventh Pay Commission is the commission for the hike of the Central government employees. As the Seventh Pay commission is the commission which will provide the recommendation for the Cabinet about the hike percentage, Minimum Wage, Fitment  factor and Pay Matrix for the Central Government employees. The decision of the Cabinet is final in the case of accepting the recommendation or to reject it. As the 47 lakh government employees and 52 lakh pensioners are the benefiter of this increment. 7th Pay Commission Latest News Cabinet  Report June 2016 Informations given below.

Hike release on 29th June 2016

As  per the official news, 7 th Pay Commission recommended the increase of the minimum basic pay for the government employees of Central departments. Thus Central government employees and their Unions are expecting that Cabinet will decide on  the hike recommendation by seventh Pay Commission on the meeting about to held on 29th June 2016. For this hike recommendations, high level committee was formed under the leader ship of PK sinha as the report was already submitted to the Central government. If the hike amount released then, the pay scale increase will be implemented from 1.1.2016 and the due amount will also released for the previous months.

Retirement Age from 60 to 58

In the Seventh Pay commission recommendation, unofficial news was spreading viral over the employees that they recommended to reduce the service age of employees from 69 to 58 years. It states that employees retire with 33 years of service or 58 years of age, whichever comes first. If an employee joins central government services at the age of 27, he would complete 33 years of service at the age of 60. When he joined before  age of 27, his retirement age will be too differ from original retirement age. If  a employee start servicing at the age of 20, he will be forced to retire at the age of 53.

Nobody is sure yet if the 7th Pay Commission will include the recommendations on retirement age in its report to the government.

Rumours on Hike amount

This hike was expected for a long time by Central Government Employees. Hence it become the most discussing topics .This results in creating the rumours on the amount which was recommended by the seventh pay commission With the Seventh Pay Commission recommending the minimum pay in government set to be at ₹18,000 per month and the Maximum Pay is from  ₹2,25,000 per month for Apex Scale and ₹2,50,000 per month for Cabinet Secretary and others presently at the same pay level.

Unconfirmed reports claim that it could be as high as Rs.20,000, 21,000, 23,500, or even Rs.24,000 as minimum Pay. This create more expectation and confusion on the hike amount led to curiosity of the cabinet meeting about to held.

Pay Matrix

Pay Matrix is nothing but the new revised pay scale for the central government employees. Many online Pay Matrix calculator are available for the easy calculation with the pay scale. As the Pay scale included new and revised basic pay, house rent allowance (HRA) and transport allowance(TA) with gross pay and band pay.

Recommended  New Pay Matrix instead of Pay structure

The Commission believes that any new entrant to a service would wish to be able to make a reasonable and informed assessment of how his/her career path would traverse and how the emoluments will progress alongside. The new pay structure has been devised in the form of a pay matrix to provide complete transparency regarding pay progression.

Prior of VI CPC  pay scales are given . The VI CPC had recommended running Pay Bands with Grade Pay as status determiner. The Seventh CPC is recommending a Pay matrix with distinct Pay Level with level as status determiner. Hence the status of the employee can now be determined by the level in the pay matrix.

Fitment: A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.

Annual Increment: The rate of annual increment is being retained at 3 percent.

Allowances: The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.

Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance.

House Rent Allowance: Since the Basic Pay has been revised upwards, the Commission recommends 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 recommends 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):  CGEGIS is recommended for all the employees and the pensioners

Advances:

All non-interest bearing Advances have been abolished.

Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to ₹25 lakhs from the present ₹7.5 lakhs

Gratuity: Gratuity will be enhanced from the existing ₹10 lakh to ₹20 lakh. The ceiling on gratuity may be raised by 25 percent, if  DA rises by 50 percent.

Performance Related Pay: The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees to motivate them to perform more. PRP based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines.

Pension: The Commission recommends a revised pension formulation for civil employees 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 with minimum pay matrix with rate of 3 percent of the amount which they earned while retire from services along with their arrear amount.

The detailed pay matrix of each category officers will be released officially once they approve the recommendations. Let’s Hope for the best. For more information and updates regarding this please visit often to our website www.winmeen.com.

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