7th Pay Commission: The 7th Pay Commission is a panel set up by the Government of India to review and revise the pay scales and allowances of central government employees, pensioners, and defence personnel. The commission submitted its report in November 2015 and its recommendations were implemented from January 2016. The main features of the 7th Pay Commission are:
- A new pay matrix table that simplifies and standardizes the salary structure of different categories of employees.
- A 16% increase in the basic pay and a 63% increase in the allowances for the serving employees.
- A 23.63% increase in the pension for retired employees.
- A hike in the Dearness Allowance (DA) and Dearness Relief (DR) by 3% to 12% from January 2023.
- A uniform retirement age of 60 years for all ranks of central armed police forces.
- A provision for the inclusion of fresh categories within the ambit of Risk and Hardship Allowance for railway employees.
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The latest news on the 7th Pay Commission is that the Centre may announce a DA hike today, according to some media reports. The DA increase will likely be 4% rather than the earlier predicted 3%, taking effect from July 1, 2023. This will benefit over 1.1 crore central government employees and pensioners.
How often does the government revise pay scales?
According to the web search results, the government of India sets up a pay commission every 10 years to review and revise the pay scales and allowances of its employees. The latest pay commission is the 7th pay commission, which was established in 2014 and implemented in 2016. The next pay commission is expected to be set up in 2024.