Cabinet to decide on Seventh Pay Panel proposals soon, 20% hike likely

The Union Cabinet is going to consider recommendations of the Seventh Pay Commission soon, giving central government employees a bonanza.

The secretaries’ committee has submitted its report and would be considered by the government before deciding on the final award.

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

If the proposals are given a go ahead, they will be implemented from January 1, 2016, and the total roll out has been pegged at Rs 1.02 lakh crore.

But, the government may go in for a less hike owing to financial constraints.

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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