Govt notifies revised pay grades for employees

The government has notified revised pay grades for the implementation of the 7th Pay Commission recommendations, giving nearly 10 lakh government employees 2.57 times hike in basic pay.

The minimum pay in central government with effect from January 1, 2016, will now be ₹ 18,000 per month; at the highest level, it will be ₹ 2.5 lakh.

"With regard to fixation of pay of the employees in the new Pay Matrix as on January 1, 2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on December 31, 2015, shall be multiplied by a factor of 2.57," the notification said.

There shall be two dates for grant of increment – January 1 and July 1 every year - instead of the existing July 1 only.

Employees will be entitled to only one annual increment on either of these two dates depending on the date of appointment, promotion or grant of financial upgradation, it said.

The Cabinet had last month decided on a pay increase for central government employees and pensioners, that is estimated to cost the exchequer ₹ 1.02 lakh crore annually.