·
Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 %
whenever DA rises by 50 %.
·
A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces
personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45
lakh for different categories.
·
Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 &
15500 respectively for various categories of Defence Forces personnel.
·
Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service
Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10
years of service.
·
Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave
named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted
to all employees during the entire period of hospitalization on account of WRIIL.
8.
The Cabinet also approved the recommendation of the Commission to enhance the ceiling of
House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is
caused to employees, four interest free advances namely Advances for Medical Treatment, TA on
tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest
free advances have been abolished.
9.
The Cabinet also decided not to accept the steep hike in monthly contribution towards Central
Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission.
The existing rates of monthly contribution will continue. This will increase the take home salary of
employees at lower levels by Rs. 1470. However, considering the need for social security of
employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance
scheme for Central Government Employees with low premium and high risk cover.
10.
The general recommendations of the Commission on pension and related benefits have been
approved by the Cabinet. Both the options recommended by the Commission as regards pension
revision have been accepted subject to feasibility of their implementation. Revision of pension
using the second option based on fitment factor of 2.57 shall be implemented immediately. A
Committee is being constituted to address the implementation issues anticipated in the first
formulation. The first formulation may be made applicable if its implementation is found feasible
after examination by proposed Committee which is to submit its Report within 4 months.
11.
The Commission examined a total of 196 existing Allowances and, by way of rationalization,
recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant
changes in the existing provisions for Allowances which may have wide ranging implications, the
Cabinet decided to constitute a Committee headed by Finance Secretary for further examination
of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a
time bound manner and submit its reports within a period of 4 months. Till a final decision, all
existing Allowances will continue to be paid at the existing rates.
12.
The Cabinet also decided to constitute two separate Committees (i) to suggest measures for
streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies
likely to arise out of implementation of the Commission’s Report.
13.
Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided
that the concerned Ministries may examine the issues that are administrative in nature, individual
post/ cadre specific and issues in which the Commission has not been able to arrive at a
consensus.
14.
As estimated by the 7th CPC, the additional financial impact on account of implementation of all its
recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of
Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of
2015-16.
Cabinet approves Implementation of the recommendations of 7th Central...
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