AISBOF CIRCULAR NO.124 dated 20.11.2015
TO ALL OUR AFFILIATES/MEMBERS:
7TH PAY COMMISSION REPORT SUBMITTED
BONANZA FOR THE CIVIL SERVANTS
SUBSTANTIAL IMPROVEMENTS IN SUPERANNUATION
PAY SCALE RANGE MINIMUM ` 18,000/- MAXIMUM ` 2,50,000/-
As expected the Pay Commission headed by Justice A.K. Mathur has submitted a comprehensive 7th Pay Commission report to the Government of India recommending very substantial improvements in all aspects of the salary scales and allowances in respect of the Civil servants as well as the Pensioners in the Government. The revision to the Government servants is expected to cost more than ` 1.02 lakh crore to the exchequer. The Commission has recommended a hike of 16% in pay and 63% in allowances. The Pensioners are expected to get an increase in their pension to the extent of 24% thus providing a hefty increase in the pension received by the Pensioners and Family Pensioners of the Government.
2. The 7th Pay Commission will benefit over 47 lac employees and over 52 lac Pensioners and family Pensioners all over the country. The Pay commission has also recommended for the introduction of one rank and one pension in respect of the civil servants which includes the para-military as well as the railway retirees. The Pay Commission has also recommended for automatic up-dating of pension when the dearness allowance payable increases by 50% of the basic pay.
3. The HRA has been reduced taking into account the increase in the basic pay on account of the revision. The HRA rates are 24%, 16% and 8% of the new basic pay for class X, Y and Z cities. One of the major recommendations of the Pay Commission has been abolition of Grade Pay and the same has now been merged with the scales as expected during the last occasion. The Grade Pay was made eligible on the earlier occasion to all the benefits and allowances and hence it was a natural thing that was expected of the Pay commission during the current report.
4. The Civil servants at the higher grades would get almost 300% jump in their basic pay since the maximum pay has now been fixed at 2,50,000/- The percentage of increment has been retained at 3%. The number of allowances have been reduced either by merger of allowance or by introduction of new allowances in the name of rationalization of salary structure.
5. The Pay Commission has recommended enhancement of the Gratuity Payable under gratuity act from ` 10 lac to ` 20 lacs which is quite substantial increase apart from the improvement in the pension benefits.
6. There is a substantial increase for Central Govt. Employees Group Insurance Scheme, monthly deduction and insurance amount, with proposal for introduction of a Health Insurance Scheme for employees and pensioners.
7. The Government has taken immediate steps to set up a secretariat for the implementation headed by the Expenditure Secretary and the Honorable Finance Minister has declared that the implementation of the 7th Pay Commission Report will ensured without further delay.
8. The recommendations of the Pay Commission are effective from 1.1.2016. The 6th pay commission was effective from 1.1.2006 and the Government is expected to accept the recommendations at an early date and announce the payment of the revised salaries to the civil servants at the earliest.
9. The 7th Pay Commission when implemented is bound to create lot of hopes and aspirations amongst the other sections of the employees including the employees in the financial sector with particular reference to the superannuation benefits that have been extended to the Government Pensioners in the country. The Pay Commission recommendations are bound to impact and influence our future negotiations as far as the 11th Bipartite Salary Revision is concerned which is hardly 2 years ahead.
10. We are awaiting for the full text of the report and note to provide the details for our members in due course.
With warm greetings,