7th Pay Commission: Centre may disburse increased allowances prospectively

Zee Media Bureau

New Delhi: The government is likely to soon announce the implementation of 7th Pay Commission that would hike the salaries and allowances for over 1 crore government employees and pensioners by at least 23.5 percent.

However, what might dishearten the government employees is the disbursement of allowances.

Though the  pay increases recommended in the 7th Pay Commission report will be effective from January 1, the government will disburse allowances only prospectively, as per a report in the Financial Express.

This means that the disbursement of increased allowances will not take place from January 1.

The Pay Commission had recommended 23.55 percent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 percent of the GDP. The 23.55 percent increase includes hike in allowances.

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

Sources said the secretaries' panel may have recommended higher pay increase, with minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 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.

With PTI Inputs