Govt notifies revised pays of central staff, defence personnel
27 July 2016
The government has notified a 257-per cent hike in the basic salary for about 10 million employees and pensioners following implementation of the 7th Pay Commission Recommendations effective 1 January 2016.
The recommendations, which will cost the exchequer annually Rs1,02,000 crore, were notified in a gazette on Monday.
The minimum pay in central government with effect from 1 January 2016 will now be Rs18,000 per month, up form Rs7,000 per month. At the highest level of cabinet secretary, the salary would go up from Rs90,000 a month to Rs2.5 lakh.
The government on Tuesday said it has duly considered and accepted the recommendations of the Seventh Pay Commission in respect of the minimum pay of the various categories of employees.
However, it has not accepted the commission's recommendations on the various scales and employee categories and has instead referred the issue to a panel of officials.
In a Gazette notification issued on Monday, the government said it has accepted the commission's recommendations on minimum pay, fitment factor, index of rationalisation, pay matrices and general recommendations on pay without any material alteration.
In the case of defence personnel, the government has, in fact, revised upward the index rationalisation levels in the defence pay matrix in order to maintain parity in pay with Central Armed Police Forces.
The index of rationalisation of level 13A (Brigadier) in the defence pay matrix may be revised upward from 2.57 to 2.67; additional three stages in levels 12A (Lieutenant Colonel), three stages in level 13 (Colonel) and two stages in level 13A (Brigadier) may be added appropriately in the defence pay matrix.
The pay matrix, in replacement of the pay bands and grade pays as in force immediately prior to the notification will be as specified in the commission's report in respect of civilian employees.
With regard to fixation of pay of the employee in the new pay matrix as on 1 January 2016, the existing pay (pay in pay band plus grade pay) in the pre-revised structure as on 31 December 2015 shall be multiplied by a factor of 2.57. The figure so arrived at is to be located in the level corresponding to employee's pay band and grade pay or pay scale in the new pay matrix. If a cell identical with the figure so arrived at is available in the appropriate level, that cell shall be the revised pay; otherwise the next higher cell in that level shall be the revised pay of the employee.
After fixation of pay in the appropriate level, the subsequent increments in the level shall be at the immediate next cell in the level.
There shall be two dates for grant of increment, namely, 1 January and 1 July of every year, instead of existing date of 1 July. An employee shall be entitled to only one annual increment on either one of these two dates depending on the date of appointment, promotion or grant of financial upgradation.
The commission's recommendations and government's decision thereon with regard to revised pay structure for civilian employees of the central government and personnel of all-India services and the consequent pay fixation therein shall be effective from 1 January 2016. The arrears on this account shall be paid during the financial year 2016-2017.
The recommendations on allowances (except dearness allowance) will be referred to a committee comprising finance secretary and secretary (expenditure) as chairman and secretaries of the ministries of home affairs, defence, health and family welfare, personnel and training, posts and chairman of the Railway Board as members. The committee will submit its report within a period of four months.
Till a final decision on allowances is taken based on the recommendations of this committee, all allowances will continue to be paid at existing rates in the existing pay structure, as if the pay had not been revised with effect from 1 January 2016.
The recommendations of the commission relating to interest bearing advances as well as interest-free advances have been accepted with the exception that interest free advances for medical treatment, travelling allowance for family of deceased, travelling allowance on tour or transfer and leave travel concession shall be retained.
The recommendations of the commission for increase in rates of monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) for various categories of employees has not been accepted. The existing rates of monthly contribution shall continue.
The departments of expenditure and financial services will work out a customised group insurance scheme for central government employees.
The government has accepted the recommendations of the commission on upgrading of various posts. The department of personnel and training will separately examine the recommendations on upgradation for taking a comprehensive view in the matter.
The government has not accepted the recommendations of the commission on downgrading of posts and normal replacement will be provided in such cases.
While revising the pay of doctors who are eligible for non-practicing allowance and railway employees for whom running allowance is admissible, it will be ensured that the actual raise in pay at the time of initial fixation is about 14.29 per cent as recommended by the commission.
The pay of officers posted on deputation under central staffing scheme will be protected and the difference in the pay will be given to them in the form of personal pay to be made effective from the date of notification.
Recommendations not relating to pay, pension and allowances and other administrative issues specific to departments / cadres / posts will be examined by the ministries / departments concerned as per the allocation of business rules or transaction of business rules.
Until a decision is taken by the government on administrative issues pertaining to non-functional upgradation (NFU) presently admissible to various central services where a consensus could not be arrived at, status quo shall be maintained.