Recommendations of Seventh Central Pay Commission

Question: Who is the chairman of 7^th central pay commission?

(a) H.L Dattu
(b) H.L Nigam
(c) A.K Mathur
(d) R.K Damadiya

Ans (c)

Related facts:

• The 7th Central Pay Commission (CPC) headed by Justice AK Mathur submitted its report on 19 November 2015 to the Union Finance Minister Arun Jaitley.
• The commission recommended 23.55 percent hike in pay and allowances of government employees.
• The recommended pay revision will come into effect from 1 January 2016.

• The minimum pay for government employees is recommended to be set at 18000 rupees per month.
• The maximum pay is recommended to be 225000 rupees per month for Apex Scale and 250000 per month for Cabinet Secretary and others presently at the same pay level.
• The recommended rate of annual increment for employees is 3 percent.
• The commission has recommended increase in pay by 16 percent, increase in allowances by 63 percent and increase in pension by 24 percent.
• One Rank One Pension proposed for civilian government employees on line of OROP for armed forces.
• Ceiling of gratuity enhanced from 10 lakh rupees to 20 lakh rupees and ceiling on gratuity will be raised by 25 percent.
• The commission recommends Cabinet Secretary’s salary from current Rs 90,000 to Rs 2.50 lakh.
• The total monetary impact on the central government would be Rs 1.02 lakh crore.
• Around Rs 74,000 crore would be the impact on the Union Budget and Rs 28,000 crore on the Railway Budget.
• The total impact of the Commission’s recommendations are expected to entail an increase of 0.65 percentage points in the ratio of expenditure on (Pay + Allowances + Pension) to GDP compared to 0.77 percent in case of VI CPC.
• The commission has recommended that Military Service Pay (MSP), which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only.

• The current MSP per month and the revised rates recommended are as follows:
• Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service.
• The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances.
• The Commission is of the view that in case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defence forces personnel.
• The Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively.
• It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.
• The Commission has recommended a consolidated pay package of Rs 4,50,000 and Rs 4,00,000 per month for Chairpersons and Members respectively of select Regulatory bodies.
• The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees.

Reference:

http://7cpc.india.gov.in/about_us.html

http://7cpc.india.gov.in/pdf/sevencpcreport.pdf

http://pib.nic.in/newsite/PrintRelease.aspx?relid=131719

http://finmin.nic.in/press_room/2015/7thCPC_Highlight.pdf