Union Cabinet approves Seventh Pay Commission recommendations

29 June, New Delhi

The union cabinet on Wednesday approved the Seventh Pay Commission Report’s recommendations hiking salaries of central government employees as well as pensions, official sources said.

The decision was taken at a cabinet meeting chaired by Prime Minister Narendra Modi. The recommendations will impact the some 47 lakh employees in the central government and 52 lakh pensioners.

The Commission has reportedly recommended a minimum pay of Rs 18,000 per month, with the upper ceiling at Rs 225,000 a month.

The recommendation for the Cabinet Secretary and others at the same pay level is Rs 250,000 a month.

The government had set up an Empowered Committee of Secretaries under Cabinet Secretary P.K. Sinha in January to look into the Pay Commission recommendations.

The date of implementation for the recommendations is January 1, 2016.

The total financial impact of implementing the recommendations in the 2016-17 fiscal is likely to be Rs 102,100 crore as per official estimates.

Of this, increase in pay will account for Rs 39,100 crore, increase in allowances will take up another Rs 29,300 crore while pensions will entail an expenditure of Rs 33,700 crore.

Meanwhile Finance Minister Arun Jaitley today congratulated central government employees on the rise in their salary.

In a tweet, the Minister extended his wishes to central government officers, employees and pensioners on the historic rise in their salary and allowances through the 7th Central Pay Commission.