Press Information Bureau 

Government of India

Ministry of Finance 

25-September-2013 11:50 IST

FM: Prime Minister Approves the Constitution of Seventh Central Pay Commission; Recommendations are Likely to be implemented with effect from 1st January, 2016 

The Finance Minister Shri P.Chidambaram in a statement said here today that the Prime Minister has approved the constitution of the Seventh Central Pay Commission.

The fourth, fifth and sixth Central Pay Commissions’ recommendations were implemented as follows:

4th CPC                       1.1.1986

5th CPC                       1.1.1996

6th CPC                       1.1.2006

The average time taken by a Pay Commission to submit its recommendations has been about two years.  Accordingly, allowing about two years for the 7th CPC to submit its report, the recommendations are likely to be implemented with effect from 1.1.2016.

The names of the Chairperson and members as well as the terms of reference (ToR) of the 7th Pay Commission will be finalised and announced shortly after consultation with major stakeholders.

Enhancement of ceiling for calculation of ex-gratia bonus payable to Gramin Dak Sevaks

The Union Cabinet today approved the proposal of the Department of Posts to enhance the ceiling for calculation of ex-gratia bonus payable to Gramin Dak Sevaks from Rs. 2,500/- to Rs.3,500/- same as that prescribed for the regular departmental employees. The decision would be applicable with prospective effect that is from the accounting year 2012-13 payable in 2013-14.

The increase in bonus calculation ceiling will restore the long established parity between regular departmental employees and Gramin Dak Sevaks on the issue of payment of bonus. This decision will benefit 2.63 lakh Gramin Dak Sevaks working in the Department of Posts, who play a very vital role in providing postal, financial and insurance services in the rural, hilly and tribal areas of the country.

Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 01.07.2013

Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2013

The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2013, in cash, at the rate of 10 per cent increase over the existing rate of 80 per cent.

Hence, the Central Government employees as well as the pensioners are entitled for DA/DR at the rate of 90 per cent of the basic with effect from 01.07.2013. The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.

The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs. 10879.60 crore per annum and Rs. 7253.10 crore in the financial year 2013-14 ( i.e. for a period of 8 month from July, 2013 to February 2014)

Submission of Form 14 by the spouse to the pension disbursing bank after the death of the pensioner - instructions reg.

Expenditure Management-Economy Measures and Rationalization of Expenditure, Dated 18th September, 2013

Action Taken Report (ATR) on the minutes of the 22nd meeting of Standing Committee of Voluntary Agencies (SCOVA).

23rd meeting of the Standing Committee of Voluntary Agencies (SCOVA) under the Chairmanship of Honorable MOS (PP) to be held on 20th September, 2013 at 4.00 PM in Vigyan Bhawan Annexe, New Delhi Reg

 Eligibility of widowed/divorced daughters for grant of family pension - clarification regarding.

May Lord Ganesh shower you with succss in all your Endeavours Happy Ganesh Chaturthi.

Even after Modernization and several new means and schemes of money transfer, people rushed to post offices to send money order in Kokan because of relation familiar with postman