Apr 302016

Increment In 7th Pay Commission

After a long wait, all government employees are experiencing the fruitful news of increments offered by 7th Pay committee.  As per the rumors, which spread earlier this year, the group of secretaries  panel meet recently in order to analysis the report offered by 7th pay commission for government employees increment. The members of panel analyzed the practical difficulties and other issues while implementing those recommendation offered by 7th Pay committee.

increment in 7th pay commission

After the depth analysis, the empowered panel of secretaries has submitted their report at the end of June which is last month to their governance body. Based on the secretary panel members report, government announced pay hike for about 24% to all government employees and government pensioners too.

Below listed table illustrate some facts over the current Increment

S.No Facts Information
1 Pay hike will be implementing from when? As per the government statement, pay hike of about 24% will be calculated from 1st of January 2016.
2 Details of Pay and Allowance hike recommended by 7th Pay commission Panel Committee 7th Pay committee suggested around 24% hike in pay and allowances for all government employees. However, pay of government employee would be goes up to 16% and their allowances will moves up to 63%.

Impacts of Increment Provided to Government Employees

  1. As per the stats released by the government officials around 10 million of government employees along with 60 lakhs of government pensioners will be benefited.
  2. When compared with previous major hike implemented on 2008, present increment is considerably smaller however; current 24% pay hike would cost nearly 1 lakh crore for government each year.
  3. As per the statement released by finance minister Mr. Arun Jaitley, all arrears of employees which are related to current pay hike will be processed within this year.
  4. The most highlighting fact is as per the recommendations of 7th pay commission, the pay of government employees will be reviewed on every 10 years.
  5. As per the new recommendation proposed by 7th pay commission committee, Government employee would be able to receive maximum salary of Rs. 2.5Lakh per month and the minimum of Rs. 18, 000 per month.


According to economist across the nation, the higher pay would end with additional cash in the market might result to inflation. On the other hand, government officials believes that offering higher salaries to government employees would results more consuming products among the people and it will trigger nation’s economic growth. However, on considering the economist’s view, government of India planning to keep a close observation over the liquidity level prevails in the market in order to maintain the inflation level within the limit.


Annual increment is a common incident in India for the central government employees. Every year the pay commission announces the increment for the employees, whether they perform or not. But this year 7th CPC proposed to withheld the annual increment for those who did not meet the target or could not perform in their job profile whatever it was. This was quite surprising and of course made all the government employees alert.

  • Annual increment in 7th pay commission

Every year on 1st of the month of July, the pay commission announces the annual increment of the government employees. It was set that whether the employee performed throughout the year or not, he or she will get an increment as it is a rule of the pay commission. With this rule for the employees, it has seen that employees didn’t take their work seriously as they started taking this increment for granted. Looking at this scenario pay commission has declared that those who will not meet the deadline or perform well will not get any annual increment.

The 7th pay commission has taken this drastic step against the incompetent and unproductive employees who could not provide the enough performance in the first 20 years of their service. The commission also proposed that if an employee is failed to meet their target of job profile then he or she will get the option to leave the job which will be stated as voluntary retirement.

  • increment In 7th pay commission VS increment In 6th pay commission 

In previous year the 6th CPC massively altered the annual increment rates. They proposed the date of increment on 1st of July and the rate of 3% of the basic pay. This was indeed a good news for the non-performers as even if they are not receiving any promotions in their career but keep getting salary hike once in a year.

Looking at such scenario, 7th pay commission has declared that there will not be any increment for those who didn’t get any promotion in the first 20 years of their government service. According to the 7th CPC, the decision has made to differentiate between those who are highly qualified and those who are not. It is obvious that the employees who have high educational qualification will provide much better performance than the later. So the non-performers will not get any pay hike annually.

  • What people demanded From  7th pay commission

According to some employees, the annual increment should be made twice in a year, once on 1st of January and once on the 1st of the month of July. People who are recruited during the first half of the year will get their next annual increment in first day of Jan, and those who get recruited in second half of the year will get increment in the first day of July.

Some of them also raised the question of differentiating high-performance and low-performance category. Some demanded that the annual increment should be different for different people. For example, one who has better qualification and better performance will get more percentage of increment and those with low-performance will get lower rate of increment on the basis of basic pay scale.

The 7th pay commission has stated that diverse increment is logistically not possible as it is difficult to measure the high-performer or high-achiever to be precise. In that case the increment rate must be fixed for all. As the increment amount depends on the basic pay scale, so people with high pay scale automatically get high increment than low-performers. So there is no need of varied increment rate here.

Overall unlike earlier days, now each and every government employee, whether working in low grade or high level, has to work and meet the benchmark to earn the annual increment, as said by the 7th pay commission.

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