The Union Cabinet on Wednesday approved the implementation of the recommendations of 7th Pay Commission on pay and pensionary benefits. It will come into effect from January 01, 2016. The 7th Pay Commission recommendations are being implemented within 6 months from the due date. The Cabinet also decided that arrears of pay and pensionary benefits would be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year. The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.
Here are 14 developments on the 7th Pay Commission roll-out:
1. The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.