Pay Commission: Government employees also get monthly salary. However, the salary given to the government employees is calculated through the Pay Commission. For this, the 7th Pay Commission is currently in existence. Through the Pay Commission, the salary of the month is determined according to the grade of the government people.
7th Pay Commission Benefits: Since independence, the central government has set up 7 pay commissions (latest) which review and recommend changes in the remuneration structure of defense and civilian personnel of the government. Pay Commission is an administrative system and mechanism of the Central Government which reviews and examines the existing pay structure and recommends changes (in pay, allowances, benefits, bonuses and other facilities) for civilian employees and military forces.
Seventh pay commission
Apart from this, the Pay Commission reviews the rules related to bonus after assessing the performance and productivity of the employees. The activities of the Pay Commission also include examining the existing pension schemes and other retirement benefits. The Pay Commission makes recommendations only after evaluating the economic condition of our country and the resources available. This commission mainly focuses on the Central Government employees.
Pay commission
About 7 Pay Commissions have been established since 1947. The latest i.e. Seventh Pay Commission was established in the year 2014. The central government constitutes a pay commission after every 10 years to revise the pay structure of the central government. The government provides a period of 18 months to submit the recommendation through the report. This commission may send an interim report on any matter after finalizing the recommendations.
Importance of 7th Pay Commission
Pay commission is important as it operates keeping in mind all the monetary requirements of an employee. Along with the basic salary, this commission also takes care of dearness allowance, house rent allowance, traveling allowance etc.
New pay matrix
The 7th Pay Commission had recommended scrapping of existing pay bands and grade pay instead of introducing a new pay matrix. The Central Government approved this recommendation. Earlier the authorities used to determine the position of an employee on the basis of grade pay, which will henceforth be assessed in the pay matrix. He designed several pay matrices for different groups like Defense Personnel, Civil, Military Nursing Services. The purpose of organizing various pay matrices is the same.
Minimum wage
This pay commission has increased the minimum salary from Rs 7000 to Rs 18000 per month. Now the lowest starting salary will be Rs 18000 (for new recruits). On the other hand, the salary of newly recruited Class 1 officer will be Rs 56,100.
Rate of rise
This 7th Pay Commission decided to keep the rate of increment at 3 percent. The decision is expected to help the employees in the long run due to higher basic pay as they will get an annual increment of 2.57 times in future as compared to the present time.
