Why is it in the news?

• Around 58,000 professors of 213 Central universities, including IITs, will get full funding from the Centre.
• The decision is expected to improve quality of higher education and also attract and retain talent in the academia. 

Highlights of the decision

• The Union Cabinet cleared salary hike for nearly eight-lakh teachers and academic staff of higher educational institutions, implementing the recommendations of the Seventh Pay Revision Committee.
• The pay scales will be applicable from January 1, 2016.
• Also, the revised pay package will cover teachers of 119 centrally funded technical institutions — IITs, IISc, IIMs, IISERs, IIITs and NITIE.
• Annual financial liability of ₹9,800-crore for the Centre.
• This revision would register an entry pay growth in the range of 22% to 28%
• For State government-funded institutions, the revised pay scales will require adoption by the respective governments.
• The Centre will bear the additional burden of the States on account of revision of pay scales, the statement said.

Major recommendations of 7th pay commission

1. It has recommended overall hike of 23.55% in pay, allowances and pensions of central govt. Employees with effect from January 1, 2016
2. The minimum pay in govt to be set at ₹18,000 per month
3. The  system of pay bands and grade pay has been dispensed with, and a new pay matrix has been designed
4. The Military Service Pay will be admissible only to the Defence forces personnel.
5. Introduce a health insurance scheme for central govt employees and pensioners
6. The force personnel of CAPFs should be accorded martyr status in case of death in the line of duty.
7. Fair and equitable treatment must be given to all services, or it will widen the gap between the IAS and other services
8. A screening committee should be set up to decide on the allocation of officers on deputation to the center on the basis of domain knowledge
9. Introduce Performance Related Pay for all categories of central govt employees
10. Take steps to improve the functioning of NPS and establishment of a strong grievance redressal mechanism