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Business News » Personal Finance News

7th Pay Commission: These were the windfall gains for central government employees

7th Pay Commission: Compared to the basic pay and DA of the 6th Pay Commission, the salary of the lower level central government staffs rose by Rs 3,870 per month after the 7th pay commission.

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7th Pay Commission: These were the windfall gains for central government employees
7th Pay Commission: The central government employees are getting the salary as per the fitment factor of 2.57 times recommended by the 7th CPC.
Written By: ZeeBiz WebTeam
Updated: Fri, Oct 26, 2018
01:00 pm
ZeeBiz WebDesk
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7th Pay Commission: The Central government employees may be waiting for a salary hike over and above 7th pay commission, but the implementation of the 7th CPC recommendations had increased the salaries of the central government employees initially when the Cabinet gave the order to implement the panel report. When the 7th pay commission report was implemented, the minimum hike in the salary at the lowest level was calculated at Rs 3,870. The DA was made zero after the implementation of the 7th CPC. However, the Centre later started the DA provision again.

The gross salary used to be 14% less when the new pay scale came into effect. Compared to the basic pay and DA of the 6th Pay Commission, the salary of the lower level central government staffs rose by Rs 3,870 per month after the 7th pay commission. However, the salaries of those having the basic pay of Rs 67,700 rose by up to Rs 16,755.

Former president of Praygraj based AG Office Brotherhood and ex-Assistant Secretary-General of All India Audit and Accounts Association, Harishankar Tiwari told ZeeBiz.com that the entry-level basic pay was Rs 7,000 at the time of the implementation of the 6th CPC and the DA was 125%, much higher than the basic pay itself. The employees used to get Rs 14,757 after the addition of other allowances.

However, in hand salary of the employees rose by 8% to Rs 15,931 and the gross salary rose by 14% after the 7th CPC, claimed Tiwari. Later, the DA also got added to the salary. The current DA rate is 9%. It was raised from 7% to 9% just weeks ago by the Modi government.

Here's a quick comparison of 6th and 7th CPC salaries:

  6th Pay (31st Dec, 2015) 7th Pay (1st Jan, 2016)
  Level 1
Basic 7000 18000
DA 8750 0
Gross Pay 15750 18000
Deductions 993 2069
Take Home 14757 15931
  Level 5
Basic 11360 29200
DA 14200 0
Gross Pay 25565 29200
Deductions 2098 4125
Take Home 23467 25075
  Level 10
Basic 25350 67700
DA 31688 0
Gross Pay 57038 67700
Deductions 8369 14451
Take Home 48669 53249

The central government employees are getting the salary as per the fitment factor of 2.57 times recommended by the 7th CPC. However, they are demanding the pay hike by the fitment factor of 3.68 times which will set the minimum salary to Rs 26,000.

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TAGS:
7th Pay commissionSeventh pay commission7th CPCcentral government employees
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