7th Pay Commission: No hike for underperforming employees

7th Pay Commission Hike 2016

The Government of India has released a revised notification with upgraded pay for the implementation of the 7th Pay Commission recommendations.

According to the revised pay, employees will receive a 2.57-time hike in basic salary. However, the Centre has agreed to withhold increments of employees whose performance is not up to the mark, as recommended by the pay panel.

The Finance Ministry made the big announcement on their Twitter handle as well.

 5 major takeaways from the 7th Pay Commission Hike –

1. According to the new structure, the existing basic pay (as on December 31, 2015) shall be multiplied by a factor of 2.57.

2. Increment will now be granted on two dates every year- January 1 and July 1. The employees will be entitled to only one annual increment on either of these two dates, on the basis of their appointment, promotion or grant of financial upgradation.

3. The entry level pay will be Rs 18,000 per month and on the higher end, it will be Rs 2.5 lakh per month.

4. The new notification says, “The recommendations on Allowances (except Dearness Allowance) will be referred to a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members”.

5. No increment shall be done in rates of monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) for various categories of employees. The existing rates shall continue.

 

According to agency reports, the notification also delivers a consolidated pay package of Rs 4.5 lakh for Chairpersons of sector regulators, including Telecom Regulatory Authority of India, Central Electricity Regulatory Commission, Insurance Regulatory and Development Authority, Securities and Exchange Board of India, Competition Commission of India, Pension Fund Regulatory and Development Authority, Petroleum and Natural Gas Regulatory Board, Warehousing Development and Regulatory Authority, and Airports Economic Regulatory Authority of India. The members of these regulators would receive a consolidated package of Rs 4 lakh per month.

Almost 1 crore employees and pensioners will receive the benefits of the pay hike, effective from January 1, 2016.

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