Big bonanza for central govt employees: 7th Pay Commission proposes 23.55% hike in salary; minimum pay of Rs 18,000

In percentage terms, the overall increase in pay and allowance and pensions over the business-as-usual scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, in allowances 63 percent and in pension would be 24 percent. For 23.5% Salary Hike, Minimum Pay of Rs. 18000:

Zee Media Bureau

New Delhi: In a bonanza for central government employees, the Seventh Pay Commission on Thursday submitted its final report to Finance Minister Arun Jaitley recommending a 23.55 percent jump in their salary and allowances.

The Pay Commission headed by Justice A K Mathur has suggested a 16 percent increase over the basic salary plus DA for the central government staff. An increase in allowances like HRA has also been recommended.

The total increase will be 23.55 percent of the gross salary (basic plus DA plus allowances).

In percentage terms, the overall increase in pay and allowance and pensions over the business-as-usual scenario will be 23.55 percent," the report said. Within this, the increase in pay will be 16 percent, in allowances 63 percent and in pension would be 24 percent, it said.

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. For the Secretaries it has been fixed at Rs 2.25 lakh as against Rs 80,000 currently.

In a significant recommendation, it enhanced the ceiling of gratuity from the existing Rs 10 lakh to Rs 20 lakh. And the same will be raised by 25 percent whenever DA be raised by 50 percent.

The pay commission has also  proposed a status quo on the retirement age of central government employees. Retirement age for central government employees is 60 years now.

The panel has suggested abolition of the pay band and the grade pay, though it retained the annual increment of 3 percent.

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The recommendations of the 7th Pay Commission are scheduled to take effect from January 1, 2016.

Key features of Seventh Pay Commission report:

-7th Pay panel submits report to FM Arun Jaitley; suggests 23.55% hike in pay and allowances of govt employees

-Pay will go up by 16%; increase in allowances will be 63%; increase in pension will be 24%.

-Minimum basic pay for central govt staff recommended at Rs 18,000; maximum pay Rs 2.25 lakh per month

-Pay Commission recommends 3% annual increment and 24% hike in pension for central government staffers

-Pay Commission report has to be implemented from January 1, 2016

-FY17 impact seen at Rs 1.02 lakh crore from implementation of the 7th Pay Commission

-One Rank One Pension recommended for central govt staffers as well as armed forces

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 January 1, 2006.

With Agency Inputs