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Central Government Employees Good News! Check 7th Pay Commission Five-Fold Incentives Criteria, Salary Hike, Ration Money Allowance, GIS

7th pay commission is continuously offering good news to all the Central Government employees from a hike in basic salary to tax incentive. Adding to it, now an increase of five-fold incentives for CG employees has been introduced. 

It should be noted that these incentives would be applicable for the employees who will fulfill the following criteria of the higher education. 

Criteria of the eligible employees for the five-fold incentives: 

  • PhD or equivalent: Rs 30,000 PG degree/diploma of the duration of more than a year or equivalent: Rs 25,000

  • PG degree/diploma of the duration of less than one year or equivalent: Rs 20,000

  • Degree/Diploma of more than 3 years or equivalent: Rs 15,000 Degree/

  • Diploma of the duration of less than 3 years or equivalent: Rs 10,000.

The benefit under the 7th pay Commission Recommendations is that the government has assured to provide salary hikes and clear all the pending dues for lakhs of CG employees. Finance Ministry will put off the taxes on ration money allowance and risk, hardship allowances. 

Ration Money Allowance for Delhi Police, IB, A&N Police and Personnel of the IRBn: 

The government decided that all the non-gazetted personnel of the CAPF will receive the same, in relation to the rebate. Apart from, Delhi Police, IB, A&N Police and Personnel of the IRBn, who do not dine in the mess will get Ration Money Allowance.  

The present rate of this allowance is Rs 95.52 per day for non-gazetted personnel. In case of the gazetted personnel, it is Rs 79.93. 

Salary hike for BSF, CISF, ITBP, SSB employees: 

Recently, the CG employees who are currently receiving Rs 18,000 demanded a hike of Rs 8000 in the minimum basic salary. It means they have demanded an increase in the fitment factor by 3.68 times from the existing 2.57 times. 

However, after a protest, the government finally took these demands into account and decided to work upon it. Now they will be eligible for the BSF, CISF, ITBP, SSB, Indian Railway employees, ITS and even those who are on deputation to BSNL. 

central government employees

Which CG Employees are covered under 7th CPC? 

Minimum and maximum pay for government employees:  

For the newly recruited government employees at the entry level, the salary will be increased from Rs.7,000 to Rs.18,000 per month. For newly recruited Class I Officer, the minimum salary will be increased to Rs.56,100 per month. While for the cabinet secretary and others working at the same level will get Rs.2.5 lakh per month. 

Pay Matrix: For anomalies of the grade pay structure, a new pay matrix has been recommended. After it is implemented, the status of a government employee will be decided by their level in the new pay matrix. 

Work-Related Illness and Injury Leave (WRIIL): Recommendation for full pay and allowances for all the hospitalised employees. 

Fitment: A uniform fitment factor has been started to eliminate partiality and discrimination among the ranks. The fitment factor was decided at 2.57 for all the employees. As per the latest update, the government employees wanted a fitment factor of 3.68. 

Dearness Allowance: In this parameter, a 2 per cent increase, will be taken into account after commission agrees on a 7 per cent yearly hike. 

Annual increment: The recommendation is to reserve the annual increment of 3 per cent every year. 

Modified Assured Career Progression (MACP): The performance benchmark of MACP has been modified from Good to very good. It is further recommended of no annual increments and promotions for employees who will not fulfill this performance level. 

Military Service Pay (MSP): It is applicable for all the ranks including Brigadiers, and employees receiving similar higher designations. 

Allowances: Commission abolished 51 allowances from 196 allowances, i.e. a total of 37 allowances. 

House Rent Allowance: For HRA, commission had recommended a 24 per cent increase. When DA (dearness allowance) crosses 50 per cent, HRA should be increased to 27 per cent 18 per cent and 9 per cent, respectively.  

Advances: They are available only for personal computers and house building. Though, the advance amount for building home has been increased from Rs.7.5 lakh to Rs.25 lakh. 

Central Government Employees Group Insurance Scheme (CGEGIS):  

Recommended rates for insurance schemes are: 

  • Level of Employee- 10 and above, 6 to 9, 1 to 5. 

  • Present monthly deduction- Rs 120, Rs 60, Rs 30. 

  • Present insurance amount- Rs.1,20,000, Rs.60,000, Rs.30,000 

  • Recommended monthly deduction- Rs.5000, Rs.2500 , Rs.1500 

  • Recommended insurance- Rs.50,00,000, Rs.25,00,000, Rs.15,00,000 

Medical alterations: A cashless health insurance scheme has been recommended. 

Gratuity: Commission has sought to increase the ceiling of gratuity from Rs.10 lakh to Rs.20 lakh. 

Disability Pension for Armed Forces: A slab-based system for disability pension has been provided by the commission. 



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