New Delhi: The Union Cabinet on Wednesday approved the recommendations made by the 7th Pay Commission, which is likely to see a higher increase in the basic pay by average 15 percent, which is the lowest in 70 years.
Finance Minister Arun Jaitely
The 7th Pay Commission implementation will impact the remuneration of nearly 48 lakh central government employees and 52 lakh pensioners.
The Cabinet approved 23.55 percent increase in salaries, allowances and pension of central government employees and pensioners, which is estimated to put an additional burden of Rs. 1.02 lakh crore on the exchequer annually or nearly 0.7 per cent of GDP.
The Cabinet has approved minimum 20% and a maximum 25% hike in salaries. The changes will be implemented effective January 1, 2016, and the arrears’ payment will be done in tranches.
The Cabinet hiked salaries and pension but they didn’t hike allowances, which will be hiked in future.
The Cabinet ditto with the 7h Pay Commission recommendations, the commission recommended 23.55 per cent hike in salaries, allowances and pensions and a 14.27 per cent increase in basic pay for Central government employees, the lowest in 70 years.
The previous Sixth Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.
The central government employees Unions leaders today said the approved hike was lowest in many decades and were not in sync with inflation. They also said it is “totally disappointing and beats logic”.
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