7th Pay Commission Is Historic, But Not The Way You Think

The Union Cabinet on Wednesday approved the recommendations made by the 7th pay commission. Speaking at a press conference, Finance Minister Arun Jaitley accepted the recommendation to increase minimum pay from existing Rs 7,000 to Rs 18,000 per month. He announced that a fitment factor of 2.57 would apply for pay revision of all employees. And the rate of annual increment has been retained at 3%. Gratuity has been increased from Rs 10 lakh to Rs 25 lakh and House Building Advance was raised from Rs 7.5 lakh to Rs 25 lakh. The Ministry of Finance will also be looking to work out a customised group insurance scheme with low premium and high risk cover.