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Pay commission bonanza for a crore government employees

seventh pay commission government hike


In a bonanza for over one crore government employees and pensioners, the Cabinet today approved implementation of the 7th Pay Commission, which had recommended an overall hike of 23.5%.
 

"Congratulations to central government officers, employees & pensioners on a historic rise in their salary & allowances through the 7th CPC (Central Pay Commission)," Finance Minister Arun Jaitley tweeted shortly after the meeting of the Cabinet headed by Prime Minister Narendra Modi.
 

It wasn't however known immediately if the Cabinet had bettered the hike recommended in salary and allowances of nearly 50 lakh government employees and 58 lakh pensioners.
 

An official said the Cabinet has approved implementation of the recommendations from January 1, 2016.
 

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20% hike which the government doubled while implementing it in 2008.
 

After considering the increase proposed in allowances, the hike in remunerations comes to 23.55%.
 

The 23.55% overall hike in salaries, allowances and pension would entail an additional burden of ₹1.02 lakh crore or nearly 0.7% of the GDP, to the exchequer.
 

The entry level pay has been recommended to be raised to ₹18,000 per month from current ₹7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at ₹ 2.5 lakh per month from current ₹90,000.
 

The secretaries' panel may have recommended raising minimum entry level pay at ₹23,500 a month and maximum salary of ₹3.25 lakh.
 

While the Budget for 2016-17 fiscal did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.
 

Around ₹70,000 crore has been provisioned for it, the official said.

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