The Union Cabinet chaired by the Prime Minister Narendra Modi on 3 May 2017 approved modifications in the recommendations of 7th CPC (Central Pay Commission) on pay and pensionary benefits in the course of their implementation.
Earlier, in June 2016, the Union Cabinet had approved implementation of the recommendations of 7th Pay Commission with an additional financial expenditure of Rs 84933 crore for 2016-17 including the arrears for 2 months of 2015-16.
The benefit of the proposed modifications will be calculated with effect from 1 January 2016, the date of implementation of 7th CPC recommendations.
Highlights of the revision of recommendations of 7th Pay Commission
• The modified formulation of pension revision will lead to an additional benefit to the pensioners and an additional expenditure of approximately Rs 5031 crore for 2016-17 over and above the expenditure already incurred.
• It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.
• Revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner. The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases.
• Retention of percentage-based regime of disability pension implemented post 6th CPC, which the 7th pay commission had recommended to be replaced by a slab-based system.
• The decision of retaining the percentage based regime will benefit existing and future Defence pensioners. It would also entail an additional expenditure of Rs 130 crore per annum.
The 7th Pay Commission was set up on 28 February 2015 to revise remuneration of over one crore central government employees and pensioners. The commission, headed by Justice AK Mathur, submitted its report to the Union Finance Minister Arun Jaitley on 19 November 2015.
Other members of the Commission are: Vivek Rae (full time Member), Dr. Ratin Roy (part time member) and Meena Agarwal (Secretary).
When: 3 May 2017