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Seventh Pay Commission likely to be implemented soon; salary hike of 23pc on cards

New Delhi: A Committee of Secretaries headed by Cabinet Secretary P K Sinha has submitted its report on the recommendations of the 7th Pay Commission which is liley to come up for discussion in the

India TV Business Desk India TV Business Desk Updated on: June 28, 2016 9:43 IST
Govt had formed a Committee of Secretaries headed by
Image Source : PTI Govt had formed a Committee of Secretaries headed by Cabinet Secretary P K Sinha

New Delhi: A Committee of Secretaries headed by Cabinet Secretary P K Sinha has submitted its report on the recommendations of the 7th Pay Commission which is likely to come up for discussion in the Union Cabinet meeting on June 29. 

After discussion in the cabinet meeting, the government will soon announce the implementation of the Pay Commission that would hike the salaries and allowances for over 1 crore government employees and pensioners by at least 23.5 per cent. 

The government had in January set up a high-powered panel headed by Cabinet Secretary to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners. 

"Committee of Secretaries (CoS) has finalised its report on Pay Commission recommendations... We will soon (file) draft Cabinet note based on the report," Finance Secretary Ashok Lavasa said here today.

 
Based on the panel's report, the Finance Ministry is preparing a Cabinet note and the issue may come up for approval by the Cabinet as early as June 29. 

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

The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008. 

The 23.55 per cent 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. 

Around Rs 70,000 crore has been provisioned for it, officials said. 

Lavasa said the 7th Pay Commission report will be effective from January 1.

(With inputs from PTI)

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