Salary Hike of 23% for Govt Employees, 7th Pay Commission Cleared

Over 1 crore central government employees will get a salary hike of 23.55 percent starting 1 January 2016.

Justice AK Mathur submitting the Commission report to Finance Minister Arun Jaitley (left) in November 2015. (Photo: PTI)

The Union Finance Ministry has cleared the Seventh Pay Commission recommendations on Wednesday. The Commission, headed by Justice AK Mathur, had presented its 900-page report to Finance Minister Arun Jaitley on 19 November 2015.

The recommendations were submitted with an aim of implementing it starting 1 January 2016.

It had taken 19 months for the 5th Pay Commission had taken 19 months and 32 months for the 6th Pay Commission before implementation. For the speedy execution this government set up a secretary’s panel to vet the 7th Pay Commission.

Arun Jaitley, Finance Minister, India

The recommendations will impact the some 47 lakh central government employees and 52 lakh pensioners.

Within this the increase in pay will be 16 percent, increase in allowances will be 63 percent and increase in pension would be 24 percent.

The minimum pay in government is recommended to be set at Rs 18,000 per month.

Maximum pay is recommended as Rs 2,25,000 per month for Apex scale and Rs 250000 per month for Cabinet Secretary and others at the same level.

The government salaries have to reach a respectable level to attract talents. This will have an inevitable impact on the Budget. I have provided in this year’s Budget

Arun Jaitley, Finance Minister of India

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