New Delhi: The Union Cabinet on Wednesday approved the recommendations of Seventh Pay Commission that would increase the salaries of over 1 crore government employees and pensioners.
The government had in January set up a secretaries’ panel, headed by Cabinet Secretary P K Sinha, to process the recommendations of the Pay Commission. The panel vetted the recommendations and submitted its report to the Cabinet.
The approval by the Cabinet is for the full report of the 7th pay commission, headed by Justice A K Mathur, which was presented in November.
Here are the 10 facts about recommendations of the 7th Pay Commission now approved by the government:
1. Salaries and allowances of over one crore central government employees and pensioners will see a rise by about 23.5 percent upon implementation.
2. The hike is structured around the recommendation for up to 14.27 percent hike in basic salaries.
3. 50 lakh central government employees and 58 lakh pensioners will be benefitted from the recommendations.
4. Minimum salary of a central government employee will be Rs 18,000 per month. At present, the minimum salary is Rs 7,000.
5. The maximum pay is set at Rs 2,25,000 per month for apex scale and Rs 2,50,000 per month for cabinet secretary and others at the same pay level . Maximum pay is currently at Rs 90,000 per month.
6. The changes will be implemented effective January 1, 2016. The Cabinet will now decide if the six months arrears will be paid at once or in the form of instalments.
7. The pay hike will put an estimated additional burden of Rs 1.02 lakh crore, or nearly 0.7 percent of the GDP, on the government.
8. Rs 73,650 crore to be borne by Central Budget and Rs 28,450 crore by Railway Budget.
9. The increase in pay would be Rs 39,100 crore, increase in allowances Rs 29,300 crore and increase in pension Rs 33,700 crore.
10. An additional amount of Rs 1.02 lakh crore in the market could mean higher inflation rate.
