- 7th pay commission was set up in September 2013 and was accepted by the government on June 2016. impacting around 33 lakh CG employees, 14 lakh armed forces personnel, and 52 lakh pensioners.
- The total financial expenditure due to the revised salaries and pension amounts was Rs 1,02,100 crore out of which Rs 73,650 crore was borne by the General Budget and Rs 28,450 crore by the Railway Budget last fiscal.
- This would benefit employees in future on account of higher basic pay as the annual increments that they earn in future would be 2.57 times that at present.
- commission recommended a revised pension formula for civil and defence personnel who had retired before January 1, 2016. The aim of the formula was to bring a parity between the past pensioners and current retirees. An alternative calculation would be carried out, which would be the multiple of 2.57 times of the current basic pension. The pensioner would get whichever alternative would be higher.
- Commission also recommended introduction of the Performance Related Pay (PRP) for all categories of CG employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad guidelines.
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