A 23.55% pay hike has been recommended for central government employees by Justice A K Mathur in his Seventh Pay Commission report that was submitted to Finance Minister Arun Jaitley today.
Within this the increase in pay will be 16% ,63% in allowances & 24% in pension
A minimum salary of Rs 18,000 and a minimum increment of 3% has also been recommended. Maximum salary will be Rs 2,25,000.
The recommendations will directly impact 50 lakh central government employees and 54 lakh pensioners.
One Rank One Pension has been recommended for central govt staffers as well as armed forces
52 allowances will be abolished and for defence personnel 36 allowances will be merged.
“In the 900-page report of Seventh Pay Commission, we’ve heard all parties, seen hardships of people,” said Justice Mathur
Total financial impact in FY 2016-17 is likely to be Rs 1,02,100 crore, which is 0.65% of GDP.
The Pay Commission report has to be implemented from January 1, 2016.
7th pay commission likely to propose 23% salary hike for govt staff
In a bonanza for central government employees, the Seventh Pay Commission is likely to recommend on Thursday, a 22-23% jump in their salary and allowances, people familiar with the matter said.
The Pay Commission headed by Justice A.K. Mathur has suggested a 15% increase over the basic salary plus dearness allowance (DA) for the central government staff, they said, adding that an increase in allowances like house rent allowance (HRA) has also been recommended.
The total increase will be 22-23% of the gross salary (basic plus DA plus allowances), the sources said. The recommendations of the Seventh Pay Commission are scheduled to take effect from 1 January 2016.
Besides chairman, other members of the commission are Vivek Rae, a retired IAS officer of 1978 batch, and Rathin Roy, an economist. Meena Agarwal is secretary of the commission.
The central government constitutes the pay commission every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications.
The commission was set up by the UPA government in February 2014 to revise remuneration of about 48 lakh central government employees and 55 lakh pensioners.
The Union cabinet had extended the term of the panel in August by four months, till December. The 6th Pay Commission was implemented with effect from 1 January 2006.