7th Pay Commission recommends 23.55% pay hike


A 23.55% pay hike has been recommended for central government employees by Justice A K Mathur in his  7 pay commission report that was submitted to Finance Minister Arun Jaitley today.

Within this the increase in pay will be 16% ,63% in allowances & 24% in pension

The panel also recommended a minimum pay of Rs.18,000 per month for all entry-level employees and Rs 2.5 lakh for the seniormost serving officer.

The recommendations will directly impact 50 lakh central government employees and 54 lakh pensioners.

One Rank One Pension has been recommended for central govt staffers as well as armed forces

A breakup of the integral recommendations of the Seventh Pay Commission52 allowances will be abolished and for defence personnel 36 allowances will be merged.


“In the 900-page report of 7th pay commission, we’ve heard all parties, seen hardships of people,” said Justice Mathur

Total financial impact in FY 2016-17 is likely to be Rs 1,02,100 crore, which is 0.65% of GDP.

The Pay Commission report has to be implemented from January 1, 2016.

Soon after the submission of the report, Jaitley told reporters here that a secretariat to implement the pay commission recommendations will be set up under the expenditure secretary.

A separate empowered committee of various departments will examine the recommendations.

“The recommendations will be examined expeditiously and the government will take a final decision,” Jaitley added.


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