7th Central Pay Commission recommendations approved- (Ministry of Finance ) (29 Jun 2016)

MANU/PIBU/0511/2016

Administrative

The Union Cabinet approved recommendations of the 7th Central Pay Commission on pay and pensionary benefits. The recommendations will be considered effective 1 January 2016.

Minimum pay has been increased from Rs. 7,000 to 18,000 per month. Thus, the starting salary of a newly recruited employee at the lowest level will be Rs. 18,000, while for a freshly recruited Class I officer it will be Rs. 56,100.

The Cabinet did not accept hikes in monthly contribution towards Central Government Employees Group Insurance Scheme recommended by the Commission. Instead the existing rates of monthly contribution will continue.

Arrears arising out of delay in implementation of the recommendations will be made good within the financial year 2016-2017 itself.

The 7th Pay Commission estimates additional financial impact otto the exchequer at about Rs. 1,02,100 crore, in 2016-2017. An additional outlay of Rs. 12,133 crore will be on account of payments of arrears of pay and pension for two months of 2015-2016.

Tags : 7TH PAY COMMISSION MATRIX MINIMUM SALARY