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May 21, 2016

7th Pay Commission Latest News – 27% increase expected as against 14.29% recommended

Recent developments regarding implementation of 7th Pay Commission recommendations indicate that Govt may consider some of the demands of Staff Side, JCM such as minimum pay and multiplication factor etc., relating revision of Pay Central Government Employees.
7th Pay Commision has recommended that minimum Basic Pay of Central Government Employees which is Rs. 7000 presently to be increased to Rs. 18,000. This works out to 14.29 % increase when taking in to account the dearness allowance of 125% with effect from 1st January 2016.
As far as existing employees are concerned 7th CPC has recommended that their present basic pay has to be mulitiplied by 2.57, to arrive at new new basic pay as on 1st January 2016. This new basic pay is 14.22% more than the existing one.

Multiplication Factor as per 7th Pay Commission Report:

Multiplication Factor
Existing Basic Pay (Pay in pay band + Grade Pay1
Existing Basic Pay with DA2.25
7CPC recommended Basic Pay2.57
(Net increase = 14.22%)

Since the implementation of 6th Pay Commission recommendations provided an increase of 30% to 40% in the pay of Employees, pay hike of 14.22% proposed by 7th Pay Commission was termed by Staff Side, JCM as very meagre and retrograde.
In this background, now it is disclosed by reliable sources that Empowered Committee formed by the Govt to process the 7CPC recommendations is considering the staff side’s demand to revise the minimum pay to Rs. 26,000. Minister of State for Finance has also promised to consider the demands of staff side for revising the minimum and multiplication factor, favourably.
It is learnt that Govt may persuade Staff Side to settle with the minimum pay of 20,000 and multiplication factor of 2.86. As a result Net increase in Basic Pay will be 27%

Increase in Basic Pay expected:

Multiplication Factor
Existing Basic Pay (Pay in pay band + Grade Pay1
Existing Basic Pay with DA2.25
7CPC expected Basic Pay2.86  (Minimum Pay of Rs. 20,000)
(Net increase = 27%)
In addition to revision of minimum entry pay and multiplication factor, staff side has been demanding for revision of annual increment from 3% to 5%.

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