Seventh Pay Commission: Central Government Employees To Get Revised Salary In August

New Delhi: The notification for the implementation of the Seventh Pay Commission recommendations related to the hike in basic pay and pension is likely to be issued by Prime Minister Narendra Modi government later this week.

With the issuance of notification, 4.8 million central government employees and 5.2 million pensioners could get the increased payout from their August salaries.

The Union Cabinet had earlier cleared the recommendations of the Seventh Pay Commission headed by AK Mathur on June 29 in respect of the hike in basic pay and pension. However, the decision on Seventh Pay Commission suggestions relating to allowances has been referred to a Committee headed by Finance Secretary.

The Committee will complete its work in a time bond manner and submit its reports within a period of four months. Till a final decision, all existing allowances will continue to be paid at the existing rates.

The gazette notification usually comes after 15 to 20 days of Cabinet approval. For implementation of Sixth Pay Commission recommendations, it was issued on august 29, 2008 after 16 days of Cabinet approval while the Union Cabinet had given its approval for implementation of the recommendations of the Sixth Central Pay Commission on august 14, 2008.

The recommendations will benefit over one crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

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

The entry-level pay has been recommended to be raised to Rs 18,000 per month, from the current Rs 7,000, while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from the current Rs 90,000. Rate of annual increment has been retained at three percent.