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.

Besides, the Cabinet has rationalised Time Related Continuity allowance (TRCA) structure and slabs. The total GDSs have been brought under two categories viz. Branch Postmasters (BPMs) and other than Branch Postmasters namely Assistant Branch Postmaster (ABPMs).

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.

With the implementation of the new benefits, the Gramin Dak Sevaks who were earlier getting Rs 2,295 per month will get Rs 10,000 and those who were getting Rs 2,775 will get Rs 12,500- over 400 per cent hike. However, GDS who were paid Rs 4,115 will get Rs 14,500 per month,” said Union Minister Manoj Sinha told reporters after the Cabinet meeting.

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.

Important Details

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.

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