7th Central Pay Commission has recommended 23.55% hike in pay and allowances of government employees.
Minimum basic pay of 18,000 and maximum of 2.5 lakh rupees per month have been suggested by the Commission.
Talking to reporters after submitting the report to Finance Minister Arun Jaitley in New Delhi this evening, the Commission chairperson Justice AK Mathur said the pay revision will come into effect from January next year.
He said the Commission has also recommended abolition of grade pay and pay band structure. He said the rate of annual increment for employees will be 3%.
Under the recommendation, the pay will go up by 16 percent, allowances by 63 percent and pension by 24 percent. The commission has also recommended increase in military service pay besides revised pension formula for civil employees including Central Armed Police Forces and Defense Personnel retiring before 1st January 2016.
It also recommended abolition of 52 allowances and introduction of a Health Insurance Scheme.
Finance Minister Arun Jaitley said that the pay revision will impact 47 lakh serving employee and 52 lakh pensioners. He said it will cost public exchequer over one lakh crore rupees annually.
The Minister said implementation of Pay Commission will impact fiscal deficit by 0.65%. Mr. Jaitley said a committee headed by Expenditure Secretary will be set up to go through the report for its implementation.
The Pay Commission was set up in February last year to revise remuneration of central government employees and pensioners. Its recommendations will also have a bearing on the salaries of the state government staff.
Minimum basic pay of 18,000 and maximum of 2.5 lakh rupees per month have been suggested by the Commission.
Talking to reporters after submitting the report to Finance Minister Arun Jaitley in New Delhi this evening, the Commission chairperson Justice AK Mathur said the pay revision will come into effect from January next year.
He said the Commission has also recommended abolition of grade pay and pay band structure. He said the rate of annual increment for employees will be 3%.
Under the recommendation, the pay will go up by 16 percent, allowances by 63 percent and pension by 24 percent. The commission has also recommended increase in military service pay besides revised pension formula for civil employees including Central Armed Police Forces and Defense Personnel retiring before 1st January 2016.
It also recommended abolition of 52 allowances and introduction of a Health Insurance Scheme.
Finance Minister Arun Jaitley said that the pay revision will impact 47 lakh serving employee and 52 lakh pensioners. He said it will cost public exchequer over one lakh crore rupees annually.
The Minister said implementation of Pay Commission will impact fiscal deficit by 0.65%. Mr. Jaitley said a committee headed by Expenditure Secretary will be set up to go through the report for its implementation.
The Pay Commission was set up in February last year to revise remuneration of central government employees and pensioners. Its recommendations will also have a bearing on the salaries of the state government staff.
hya