Great news for central govt employees! 7th Pay Commission likely to propose 23% salary hike today

New Delhi: In a bonanza for central government employees, the 7th Pay Commission is likely to recommend on Thursday a 22-23 percent jump in their salary and allowances, according to sources.

The Pay Commission headed by Justice A K Mathur has suggested a 15 percent increase over the basic salary plus DA for the central government staff, they said, adding that an increase in allowances like HRA has also been recommended.

The total increase will be 22-23 percent of the gross salary (basic plus DA plus allowances), the sources said.

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

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.