The total financial impact on implementation of 7th Pay Commission recommendations in the FY 2016-17 is likely to be ₹1,02,100 crore, over the expenditure as per the ‘Business As Usual’ scenario. Of this, the increase in pay would be ₹39,100 crore, increase in allowances would be ₹ 29,300 crore and increase in pension would be ₹33,700 crore.
A Bird’s eye view of 7th Pay Commission Recommendations – Apart of Pay and Allowances related recommendations, 7th CPC’s recommendation relating to Health Insurance Scheme for Central Government Employees and Recommendation on Children Education Allowance are noteworthy
MACP Scheme introduced by 6th Pay Commission, provided for career progression in next grade pay hierarchy irrespective of the fact that the next grade pay in hierarchy happens to be the same. The new pay matrix advocated by 7th Pay Commission may rectify this inconsistency
Transport allowance rates recommended by 7th Pay commission are at higher side marginally while comparing the present rates and also DA payable on the same
The present rate of 10%, 20% and 30% in respect of House rent allowance have been reduced by 7th Pay Commission to 8%, 16% and 24% respectively.
7th Pay Commission has proposed for pay fixation in respect of existing employees which has to be determined by multiplying the factor applicable for grade pay and pay band in which the employee is drawing pay, with existing pay in pay band plus grade pay
7th Pay Commission report is out. While Pension of retired employees will be be increased by 24%, employees will get an overall increase of 23.55% – Fitment formula will be 2.57