7th Pay Commission Latest News – Increase in Basic Pay meagre but expected gains out of other compensation, a solace

7th Pay Commission Positive aspects

7th Pay Commission Latest News – Increase in Basic pay of 14.22% which is lowest increase out of any Pay Commission  – However, certain Positive Aspects of Recommendations made in the 7th CPC Report mainly in the areas of Central Government Employees Welfare measures and Retirement Schemes may be solace to Central Government Employees

7th Pay Commission Positive aspectsAfter a long wait of 10 years, Basic Pay of Central Government Employees has been proposed for an increase of 14.22%.  In any standards, this quantum of increase can not be justified to be adequate.  In fact this is the lowest increase out of any pay commission constituted in India so far.  Let’s wait and see whether Empowered Committee formed by the Govt to process the present pay commission report make any positive changes to it.

Though 7th Pay Commission report failed to convince Central Government Employees in pay and allowances front, there are certain positive aspects in the recommendations which mainly relate to welfare measures, compensation and Retirement benefits. In the following paragraphs we would be discussing those which might surely improve overall Compensation package of central government employees in the long run.

7th Pay Commission’s decision to retain CPI-IW with base Year 2001=100 for determining Dear Allowance rate:

As demanded by various Central Govenment Employees Federations 7th CPC has proposed for retaining All India Consumer Price Index (Industrial Workers) with base year 2001=100. This means the allowance offered by govt to compensate inflation would continue to be calculated in the same as it is done presently, after deducting the quantum of DA (@ 125% for 126%) that is to be merged with pre-revised pay.

Dearness Allowance with effect from 1st January 2016 =[ (Avg of AICPI for the period from January 2015 to December 2015 – 115.76)*100/115.76] – 125 (or) 126

Interestingly, the earlier Pay Commission (6CPC) had proposed for adopting to new series of index (CPI-IW with base year 2001=100) which was later accepted by Govt. This measure needed adjustment in the calculation formula in respect of dearness allowance with effect from 1st January 2006 in the form of linking factor of 4.63 between base year 1982=100 and 2001=100

Click here to get more details on calculation of Dearness Allowance based on CPI-IW

7th Pay Commission as well as Govt could justify in retaining CPI-IW with base year 2001=100 as new series of the index with base year 2015=100 is yet to be unveiled.

A new series of CPI-IW for DA Calculation means adjustments from old base year to new base year using linking factor and rounding-off which would surely put breaks on higher DA to Central Government Employees. So, 7th Pay Commission’s recommendations on retaining the present series of CPI-IW for DA purpose is welcome one.

Click here to get Govt’s proposal for creating new CPI-IW series with base year 2015=100

Enhanced Central Government Employees General Insurance Scheme Coverage up to Rs. 50 lakh:

7th Pay Commission Recommended Rates of CGEGIS

Level of Employee                 

Monthly Deduction

Insurance Amount

10 and above



6 to 9



1 to 5



Click here to get more information on improved CGEGIS proposed by 7th CPC

Increase in Gratuity ceiling to Rs. 20 lakh with DA indexed Gratuity for the first time:

7th Pay Commission proposed that ceiling in respect of Gratuity will have to be increased from the existing ₹10 lakh to ₹20 lakh.

Moreover, for the first time DA indexed Gratuity viz., increase by 25 percent whenever DA rises by 50 percent has been introduced by the Commission. This measure would surely compensate the inflation factor as gratuity of Rs. 20 lakh received by a retiring employee in 2016 will never be equal to the same amount received by another in 2025.

Further, 7th Pay Commission has proposed that 20 times of monthly emoluments is to be paid as gratuity for employees who intend to retire after serving 10 year of service but before 20 years of service. Presently, 10 times of monthly emoluments is being paid for length of service between 10 years to 20 years.

Checkout this link for more details on Gratuity payable for retiring central government employees

Child Care Leave extended Single Male Central Government Employees also:

Child Care Leave (CCL) is granted to women employees presently for a maximum period of two years (i.e., 730 days) during their entire service for taking care of their minor children (up to eighteen years of age).

In addtion to women employees, 7th CPC has propsed that a male employee who is single, will also be entited to Child Care Leave.

Get more information on Child Care Leave recommended by 7th Pay Commission

House Building Advance (HBA) – Loan Ceiling increased to Rs. 25 lakh:

As far Housing loan extended by Govt to its employees is concerned the Commission proposes 34 times of Basic Pay or Rs.25 lakh OR anticipated price of house, whichever is least. This is more than three times higher than the present level.

Checkout this article that explains 7th Commission’s recommendations on interest bearing advances applicable to Central Government Employees

Chidren Education Allowance and Hostel Subsidy increased by 1.5 times – whenever DA increases by 50%, these two reimbursements will be increased by 25%

CEA (₹ pm) 1500×1.5 = 2250 Whenever DA increases by 50%, CEA shall increase by 25%
Hostel Subsidy (₹ pm) 4500 x 1.5 = 6750 (ceiling) Whenever DA increases by 50%, Hostel
Subsidy shall increase by 25%

Checkout this article for more details on revised Children Education Allowance recommended by 7th Pay Commission

7th Pay Commission recommends Higher Grade Pay for certain Posts in Central Government Service considering the service conditions:

On the basis of nature of work and anomalies, 7th Pay Commission has recommended higher grade pay for certain cadres.

Post wise higher grade pay recommended list is given below.

Sl.No Ministry / Dept Name of the Post Present 6cpc Grade Pay (Rs.) New Grade Pay recommended by 7th Pay Commission (Rs)
1. Railways Dietitians 4200 4600
2. Railways Senior Dietitians 4600 4800
3. Railways Assistant Dietetic Officer 4800 5400 (in PB-2)
4. Andaman and Nicobar Administration Junior Radiographer 2000 2800
5. Railways Perfusionists 2400 4200
6. CGHS Dental Hygienists 2400 4200
7. Defence Russian Officers Translators 4600 5400
8. Defence Russian Senior Officers Translators 5400 6600
9. Defence Russian Editors 6600 7600
10. Central Sheep Breeding Farm Sheep Shearer cum Supervisor 1800 2400
11 Indian Postal Service Inspector 4200 4600
12. Indian Postal Service ASPOs 4800 5400

National Archives of India

Assistant Archivists 4200 4600
14. National Archives of India Archivists 4600 4800
15. National Archives of India Scientific Officer 4600 4800, 5400(12 yrs)
16. All Ministries Officers in organised accounts cadres 4800 5400
17. Dr. RML Hospital Junior ECG Technician/Junior Cardiac Technician 2400 2800
18. Andaman and Nicobar Administration Junior Agriculture Assistant/Junior Soil    Conservation    Assistant 2400 2800
19. Andaman and Nicobar Administration Bus Conductors 1800 1900
20. Mines Senior Technical Assistants (STAs) 4200 4600
21. JTA, Store Keeper, 2800 4200
22. Assistant Store Keeper 1900 2400
23. Electrical Supervisor 2800 4200
24 Laboratory Assistant 2400 2800
25 Machine Man, Junior Press Assistant 1800 1900
26 CBI Sub Inspector 4200 4600
27 Inspector 4600 4800
28 Railways Assistant Station Master (ASM) 2800 4200
29 Railways Commercial Clerks + Enquiry Cum Reservation Clerks (ECRCs)+Ticket Checking staff (TTEs and TCs)= Commercial and Ticketing Staff 1900




30 Railways Accounts 4800 5400
31 Railways Chemical  and  Metallurgical  Assistants 4600 5400
32 Shipping Head Light Keeper 4200 4600
33 Shipping Navigational Assistant Gr.II 2800 4200
34 Shipping Navigational Assistant Gr.III 2400 2800
35 Shipping Light House Attendant 1800 1900
36 Statistics Director General, Central Statistics Office HAG+ L17
37 Textiles Technical Officers 4200 4600
38 Textiles Assistant Director Gr. II (Technical) 4600 4800
39 Town and CountryPlanning Organisation Planning Assistants 4200 4600
40 Central Water Commission (CWC) Senior Research Assistant 4200 4600
41 Central Water Commission (CWC) Assistant Research Officer 4600 4800
42 Central Ground Water Board (CGWB) Technical Operator (Drilling) 1800 1900
43 National Academies heads of National Academies Apex Scale Rs.80000

Intelligence Bureau (IB)

ACIO-II 4600 4800
45 Intelligence Bureau (IB) ACIO-I 4200 4600

Check this link for more details on higher grade pay recommended to certain posts

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