7TH CPC: MINIMUM PAY RS. 18000, FITMENT FACTOR 2.57 AND GENERAL FEATURES ON PAY AND PENSIONS

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7th Pay Commission General Features on Employees and Pensioners

GENERAL FEATURES 
  • Recommendations of 7th CPC on pay and pensionary benefits will come into effect from 01.01.2016.
  • 7th CPC recommendations are being implemented within 6 months from the due date. 
  • Arrears of pay & pensionary benefits to be paid during FY 2016-17 itself, unlike past when parts of arrears were paid in the next FY. 
  • Award of 7th CPC approved by Cabinet will benefit over 1 crore employees including over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from defence forces.

Implementation of the recommendations of 7th Pay Commission on Pension 

Minimum Pension increased from 3500 to 9000 (2.57 times) 

  • No changes in pension calculation, Leave en-cashment (300 days) at the time of retirement, commutable portion of pension (40%), etc. 
  • Gratuity ceiling increased from Rs. 10 lakh to 20 lakh. Gratuity ceiling will increase by 25 percent whenever DA rises by 50 percent. 
Revision of Pension (Past Pensioners) 

  • 7th CPC has recommended parity between pre and post 7th CPC retirees as per following two alternative formulations 
  • 50% of notional pay calculated by adding, number of increments earned in scale at retirement, to the mini-mum of corresponding Level in Pay Matrix (increment based formula) or Existing basic pension x 2.57 (fitment factor based formula) Pensioners may be given the option of choosing whichever formulation is beneficial to them.

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