7th Pay Commission: Cabinet approves over 400% salary hike for 3.07 lakh employees
New Delhi: The Union Cabinet chaired by Prime Minister Shri Narendra Modi on Wendesday approved the revision in the wage structure and allowances of Gramin Dak Sevaks (GDS) of the Department of Posts.
The revision in the wage structure would entail an estimated expenditure of Rs 1257.75 crore (Non-recurring expenditure – Rs 860.95 crore and Recurring expenditure of Rs 396.80 crore) during 2018-19.
The present 11 TRCA slabs will be merged into only three TRCA Slabs with two levels each for BPMs and other than BPMs.
Meanwhile, Dearness Allowance (DA) will continue to be paid as a separate component, and also revised from time to time whenever it is revised for Central Government Servants.
Besides, the Cabinet decided to continue the calculation of the ex-gratia bonus by applying the calculation ceiling of Rs 7000 as basic TRCA + DA till a new scheme is devised.
The employees will get Arrears for the period 1.1.2016 to the date of implementation with an increase in the basic TRCA drawn during the period by a factor of 2.57. The arrears will be paid in one installment, a PIB release read.
Annual increase at the rate of 3% and the same may be given on 1st January or 1st July of every year as the case may be based on the one time written request of GDSs.
A new Risk and hardship Allowance has been introduced. Other allowances- Office maintenance allowance, Combined duty allowance, Cash conveyance charges, Cycle maintenance allowance, Boat allowance and Fixed stationery charges have been revised.
It is believed that the revision would result in improving the wages, allowances and discharge benefits of Gramin Dak Sevaks, providing efficient and cost-effective basic postal facilities in the rural area. The proposed increased emoluments will enable him to improve the CG employees’ socio-economic standing.