Pay Commission recommends 23.55% hike; OROP for civilians too

Thursday, Nov 19, 2015,21:12 IST By metro vaartha A A A

New Delhi | In a big bonanza to central employees and pensioners, the seventh Pay Commission today recommended a 23.55 per cent increase in salary, allowances and pension along with a virtual one-rank-one-pension for civilians, involving an additional outgo of Rs 1.02 lakh crore a year.
A minimum pay of Rs 18,000 per month and a maximum of Rs 2.5 lakh per month has been recommended by the Commission, headed by Justice A K Mathur, that presented its 900-page report to Finance Minister Arun Jaitley here.
The recommendations, which are to be implemented from January 1, 2016, will benefit 47 lakh central government employees and 52 lakh pensioners.
The impact the recommendations will be Rs 1.02 lakh crore — Rs 73,650 cr on Central Budget and Rs 28,450 cr on Railway Budget. The award of the pay panel will also benefit staff of autonomous bodies, universities and public sector units, Jaitley said after receiving the report. In percentage terms, the overall increase in pay and allowance and pensions over the business-as-usual scenario will be 23.55 per cent, the report said. Within this, the increase in pay will be 16 per cent, in allowances 63 per cent and in pension would be 24 per cent, it said. The total salary and pension bill of the central government, which will also include railway employees, will go up from estimated Rs 4.33 lakh crore to Rs 5.35 lakh crore during 2016-17. The panel has suggested abolition of the pay band and the grade pay, though it retained the annual increment of 3 per cent. It has also recommended a fitment factor of 2.57 which will be applied uniformally to all employees.
Pay Commission has batted for granting martyr status to personnel of central paramilitary forces, on the lines of armed forces. The Commission is of the view that in case of death in the line of duty, the force personnel of Central Armed Police Forces should be accorded martyr status, at par with the defence forces personnel, the recommendations submitted by the Commission said. Associations of retired paramilitary forces and those serving have time and again said that they should be accorded such a status.

Following are the highlights of the recommendations made by the 7th Central Pay Commission, headed by Justice A K Mathur:
* 23.55 per cent increase in pay and allowances recommended * Recommendations to be implemented from January 1, 2016 * Minimum pay fixed at Rs 18,000 per month; maximum pay at Rs 2.25 lakh * The rate of annual increment retained at 3per cent * 24 per cent hike in pensions * One Rank One Pension proposed for civilian government employees on line of OROP for armed forces * Ceiling of gratuity enhanced from Rs 10 lakh to Rs 20 lakh; ceiling on gratuity to be raised by 25 per cent whenever DA rises by 50 per cent * Cabinet Secretary to get Rs 2.5 lakh as against Rs 90,000 per month pay band currently * Financial impact of implementing recommendations in toto will be Rs 1.02 lakh crore – Rs 73,650 crore to be borne by Central Budget and Rs 28,450 crore by Railway Budget. * Total impact of Commission’s recommendation to raise the ratio of expenditure on salary and wages to GDP by 0.65 percentage points to 0.7 per cent * Military Service Pay (MSP), which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only * MSP for service officers more than doubled to Rs 15,500 per month from Rs 6,000 currently; for nursing officers to Rs 10,800 from Rs 4,200; for JCO/ORs to Rs 5,200 from Rs 2,000 and for non-combatants to Rs 3,600 from Rs 1,000 * Short service commissioned officers will be allowed to exit the armed forces at any point in time between 7 to 10 years of service * Commission recommends abolishing 52 allowances; another 36 allowances subsumed in existing allowances or in newly proposed allowances. * Recommendations will impact 47 lakh serving govt employees, 52 lakh pensioners, including defence personnel.

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