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The Pay Commission is an administrative system/mechanism that the government of India set up in 1956 to determine the salaries of government employees Almost after every ten years the central government appoints a Pay commission to revise the salary structure of the central government employees.

The 7th Pay Commission, which will increase the income of around one crore government officers and pensioners. The Seventh Pay Commission has also recommended two dates for annual increments, and the introduction of the Performance Related Pay (PRP) for all central government employees.


What is the proposal of 7th Pay Commission?

The proposal for 7th Pay Commission, which gives an increment to government officials, was considered in November 2015 to the NDA government. The Narendra Modi government accepted the recommendations of 7 CPC after severe analysis in June 2016. The recommendations of the 7th Pay Commission give a 14% hike in salary to government officials. The 7th Pay Commission will revise the minimum salary of a central government employee from the current Rs 7,000 per month to Rs 18,000 per month. The salary of cabinet secretaries will be increased up to a minimum of Rs 2.5 lakh per month against the current salary of Rs 90,000. The gratuity ceiling has been increased from Rs 10 lakh to Rs 20 lakh.

7th Pay Commission has given two dates for grant of increment – January 1 and July 1 of every year. Although each employee is entitled to one annual increment, the change in dates is to help in the flexibility based on the date of appointment of each employee.

The government is yet to implement its commission, which will benefit many government officials and pensioners including the Indian armed forces. The main reason behind this delay was the demonetization and currently is the high value of investment required. According to reports, the 7th Pay Commission recommendations would have cost Rs 1.02 lakh crore in Fiscal Year 2016-17 to the government.

Once in action, the 7th Pay Commission will bring a 23.5% increase in the income of the central government employees and pensioners. This will contribute to the increased standard of living of government employees and help in raising their spending capacity, as economists predict that this raise in salaries will push the consumer demand in various sectors.

The Seventh Pay Commission has received negative reactions from the Indian defense many army officers are being vocal on social media about their opinion on the pay commission. While 7th Central Pay Commission provides for timescale promotions from the police, the Defense civilians from audit and account services, and other officers at regular intervals of 4, 9, 13, 14, and 16 years of service.


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