7th Pay Commission will be implemented from January 1, 2016 according to sources

New Delhi: The Government of India is likely to implement seventh pay commission recommendations from January 1, 2016. According to several sources, the report of the seventh pay commission will be accepted soon. The recommendations will take effect from the 1st January of 2016. According to latest sources, the recommendations report is to be tabled by the Commission in December. Around 54 lakh central government employees and more than 55 lakh pensioners will be positively affected.

Justice AK Mathur - Chairman of 7th Pay Commission

Justice AK Mathur – Chairman of 7th Pay Commission

After implementation of 7th Pay Commission report for the central government employees, most of state governments will also accept and implement the seventh pay commission recommendations with modification according to their own needs.

It is expected that the seventh pay commission to recommend a hike of 100% for the central government employees. The pay commission will consider current market inflation, productivity of the workforce, consumer price index, and several other things before tabling its recommendations.

After implementations of the recommendations of the 7th Pay Commission, Indian economy will see a positive impact according to several economic experts. Many automobiles companies in India expecting a slight growth in their car sales after implementation of 7th Pay Commission. However, the burden of 7th Pay Commission will be seen on the Government of India expenses.

The pay scale of the central government employees will be increased starting from April 1, 2016. The government has indicated that the pay hike will adversely affect economy to some extent. Finance Minister Arun Jaitley said in the Parliament during the budget session that “The 7th Pay Commission impact may have to be absorbed in 2016-17.”

About 7th Pay Commission

7th Pay Commission was constituted under the previous UPA Government in 2014 to revise the salary and other perks of the central government employees. 7th Pay Commission is chaired by the former Supreme Court judge Justice Ashok Mathur.

Article first published on October 8, 2015.

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