7th Pay Commission

The Central Pay Commission: A Long Standing Government Scheme

Central Pay Commissions are generally introduced at a periodic interval of 10 years. The 6th pay commission was referenced on 1st January 2006. Thus the Terms Of Reference for the 7th pay commission was approved on 2014 for its commencement by 2016. All details of the Central Pay Commission has been discussed below.

7th Pay Commission

What are The “Terms of Reference”?

Terms of Reference defines a set of guidelines that govern all the central pay commissions. These terms are cross verified and revised in order to support the demands of all central government employees.

What Are The Factors on Which Central Pay Commissions are Based?

The Pay Commissions basically takes the following factors into account:

  • The basic pay scale of a central government employee.
  • The miscellaneous facilities and allowances that are provided in terms of cash or benefits.
  • Assessment of the existing pay structure along with incentives in order understands its impact on employee productivity and satisfaction.
  • The retirement schemes including the pension benefits are taken into account.

Who Are The Government Employees Benefiting from Pay Commissions?

Given below are the list of government officials who benefit from the pay commissions:

  • Members of Indian Defence.
  • Official members of Supreme Court.
  • All the regulating government bodies except the RBI (Reserve Bank of India).
  • Employees of central government who work in industrial as well as non-industrial sectors.

What Are The Factors Taken Into Account For The 7th Pay Commission?

The 7th Pay Commission, which is the latest Central Pay Commission, has various Terms of Reference that were considered before its commencement. It includes statistics like the nation’s financial scenario, economic standing as per other countries and review of benefits in the existing pay commission. The State Government follows the Central Pay Commission hence a complete economic picture of India is required. Also, before upgrading to the 7th Pay Commission, the Government calculated if there were ample funds left for the infrastructural development of the nation.

What Are The Important Factors And Latest Developments In 7th Central Pay Commission?

The Government had decided on a fitment factor of 2.57 by which the salary of a government employee will increase in the 7th Pay Commission. Also, the House Rent Allowance or HRA will be reduced from 10%, 20% and 30% to 8%, 16%, and 24%. There is a total of 196 allowances under Central Pay Commissions. Out of them, 52 has been discarded completely and 36 are under assessment. The government employees have demanded the fitment factor to be increased to 3.16.

What Are The Controversies That Surround Central Pay Commissions?

There is one particular controversy regarding the Central Pay Commission that has yet not been resolved. Mostly IAS officers have been the members of the panel that is formed to authorize the pay commissions. As a result, it is seen that IAS officers reap more benefits than the other government employees when each pay commission commences. Thus there have been demands to include members from other government organizations and civil services officers to be included among the Pay Commission members.


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