Cabinet clears 7th Pay Panel proposals; 23% pay hike for government employees

The Union Cabinet approved the recommendations of the Seventh Pay Commission, giving central government employees a bonanza.

The secretaries’ committee had submitted its report and was considered by the government before deciding on the final award.

The Seventh Pay Commission has proposed around 23.55 per cent hike in pay and allowances of serving central government employees and 24 per cent increase in pension of retired officers.

The minimum pay will be at Rs 18,000 per month, which is more than double of the present Rs 7,000.

The maximum 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. Presently, the scale is Rs 90,000 per month.

The recommendations will be implemented from January 1, 2016, and the total roll out has been pegged at Rs 1.02 lakh crore.

In the Budget 2016-17, the government has budgeted 32 per cent increase in salary of its employees and a paltry hike in allowances at 1.9 per cent.

As per Moody’s the Pay Commission recommendations is not fully accounted for in the budget and will be a source of spending pressure.

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