One of the big things for government employees has been and is the 7th Pay Commission, and as of late, it is also becoming more important for pensioners. News around implementation, benefits, and potential changes for central and the state government employees within the country evoke interest within thousands of government employees. The 7th Pay Commission: Facts and Their Impacts.
1. What Is The 7th Pay Commission?
The Pay Commission is set up by the government to deal with the necessary revisions of the salaries and pensions of government employees. The 7th Pay Commission was inaugurated in 2016, putting its efforts into increasing the basic pay, allowances, and pensions. More important was to define a new fitment factor whereby salary increment applied uniformly across various levels of pay.
2. The Fitment Factor –
Yet Another Major Booster in Salaries from the 7th Pay Commission
Still another major attraction of the 7th Pay Commission was fitment factor 2.57 whereby every employee got a minimum of 2.57 times their earlier basic pay as a salary increment. This made a considerable impact in the fine-tuning discussion of salary structure. The ongoing deliberations suggest further reviews of the fitment factor under the 8th Pay Commission, which would surely entail more ways to increase salary increments in the years to come.
3. Impact On Allowances & Perks
Over 50 allowances were modified or abolished under the Seventh Pay Commission. Certain allowances, such as House Rent Allowance, or HRA, and Dearness Allowance, or DA, were escalated twice. These newly introduced allowances favored the employees; every six months, DA is raised depending on the inflation factor. Current news reports indicate that DA may soon touch 50 percent, with automatic increments in salaries thereafter.
4. Benefit With Pension Service To Noticeable Revenge On The Retired
Pensioners also stood to gain a great deal from the working of the 7th Pay Commission, being that their pensions were likewise revised along with the salaries. The adjustments included the raising of the minimum pension and also granting periodic increments of Dearness Relief to the pensioners. Such arrangements ought to have existed for retired government employees for a certain kind of existence after their active service.
5. Expected Changes: Will There Be?
The 7th Pay Commission, notwithstanding, credited whatever changes the employees and pensioners made which were their due, talks for the 8th Pay Commission have long since begun. Speculative expert opinions suggest that this new commission might bring a fitment factor of 3.68, the greatest ever in salary increment history. The employees now await official pronouncements regarding the formation and implementation of the 8th Pay Commission, expected to be done around 2026.
Also Read: NPS Pension New Rules: Employees Will Get Security Like OPS, know The Rules