The
implementation of 7th Pay Commission recommendations is now going to become
visible. However, still there exist issues in terms of disbursement of arrears
and allowances. It has been observed that the implementation of the
commission’s recommendations earlier were very time consuming. However, 7th CPC
recommendations have been implemented within six months from the due date. On
the other hand, the key aspect is that how efficiently and timely the
disbursements of the allowances are being made to the Central employees.
Generally, when Central pay commission is implemented, it takes about two years
for the disbursement of all allowances.
As
far as the salary structure is concerned under 7th CPC, the present system of
Pay Bands and Grade Pay has been dispensed and a new Pay Matrix is introduced.
In this regard, separate Pay Matrices have been drawn up for Civilians, Defence
Personnel and for Military Nursing Service. The CPC has introduced index of
rationalisation for arriving at minimum pay in each Level of the Pay Matrix
depending upon the increasing role, responsibility, and accountability at each
step in the hierarchy. In this context, CPC has enhanced the minimum pay from
Rs 7000 to 18000 per month and the starting salary of a newly recruited
employee at lowest level is now Rs 18000 whereas for a newly recruited Class I
officer, it is Rs 56100.
Under
7th Central Pay Commission (CPC), the salaries of the employees are obtained by
multiplying the existing basic pay by a factor of 2.57 and the figure so arrived
will be added to all the applicable allowances such as Transport Allowance
(TA), House Rent Allowance (HRA), Medical Allowance, etc. The hypothetical
example of calculating an employee’s salary as per 7th CPC is illustrated
below:
A.
Basic pay of an employee as on 1st January 2016 is Rs 20,000
B.
Multiply basic pay by 2.57 fitment factor = Rs 20,000 x 2.57 = Rs. 51,400
C.
Addition of TA, HRA, medical Allowances as applicable and according to the
revised rates of allowances approved by the Government etc to the amount Rs
51,400
D.
New Pay = (Basic pay (as on 1st Jan 2016) x 2.57)+ All Allowances as per to the
revised rates by the Government
7th
CPC has come into effect since Jan 2016 and is presently running in its second
year. The recently approved modifications by the government in regards to
recommendations of the 7th CPC on allowances are going to be effective since
1st July 2017. It is expected that all the disbursements will be made gradually
by the Central government by end of this year.
It
is also anticipated that with the additional income in the hands of central
employees may give a boost to consumer goods manufacturing coupled with good
monsoon season as forecast by the India Meteorological Department (IMD),
favourable inflationary scenario and GST implementation leading to reduced
inputs costs in the coming times. In a nutshell, with timely disbursements of
allowances to employees, it is expected that the demand and consumer spending
in the economy will be boosted and likely to witness a huge push in terms of
manufacturing activity, creation of jobs, revenue generation and would boost
the overall growth sentiments, going ahead.
Source:
financialexpress
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