7th Pay Commission – Certain Positive Aspects of Recommendations made

7th Pay Commission’s decision to retain CPI-IW with base Year 2001=100 for determining Dear Allowance rate:

Click here to know about Method to calculate various Consumer Price Indices

7th Pay Commission as well as Govt could justify in retaining CPI-IW with base year 2001=100 as new series of the index with base year 2015=100 is yet to be unveiled.

A new series of CPI-IW for DA Calculation means adjustments from old base year to new base year using linking factor and rounding-off which would surely put breaks on higher DA to Central Government Employees. So, 7th Pay Commission’s recommendations on retaining the present series of CPI-IW for DA purpose is welcome one.

Click here to get Govt’s proposal for creating new CPI-IW series with base year 2015=100

Enhanced Central Government Employees General Insurance Scheme Coverage up to Rs. 50 lakh:

7th Pay Commission Recommended Rates of CGEGIS

Click here to get more information on improved CGEGIS proposed by 7th CPC

Increase in Gratuity ceiling to Rs. 20 lakh with DA indexed Gratuity for the first time:

7th Pay Commission proposed that ceiling in respect of Gratuity will have to be increased from the existing Rs.10 lakh to Rs.20 lakh.

Moreover, for the first time DA indexed Gratuity viz., increase by 25 percent whenever DA rises by 50 percent has been introduced by the Commission. This measure would surely compensate the inflation factor as gratuity of Rs. 20 lakh received by a retiring employee in 2016 will never be equal to the same amount received by another in 2025.

Further, 7th Pay Commission has proposed that 20 times of monthly emoluments is to be paid as gratuity for employees who intend to retire after serving 10 year of service but before 20 years of service. Presently, 10 times of monthly emoluments is being paid for length of service between 10 years to 20 years.

Checkout this link for more details on Gratuity payable for retiring central government employees

Child Care Leave extended Single Male Central Government Employees also:

Child Care Leave (CCL) is granted to women employees presently for a maximum period of two years (i.e., 730 days) during their entire service for taking care of their minor children (up to eighteen years of age).

In addtion to women employees, 7th CPC has propsed that a male employee who is single, will also be entited to Child Care Leave.

Get more information on Child Care Leave recommended by 7th Pay Commission

House Building Advance (HBA) – Loan Ceiling increased to Rs. 25 lakh:

As far Housing loan extended by Govt to its employees is concerned the Commission proposes 34 times of Basic Pay or Rs.25 lakh OR anticipated price of house, whichever is least. This is more than three times higher than the present level.

Checkout this article that explains 7th Commission’s recommendations on interest bearing advances applicable to Central Government Employees

Chidren Education Allowance and Hostel Subsidy increased by 1.5 times – whenever DA increases by 50%, these two reimbursements will be increased by 25%