A more than crore government employees pay and pension hikes with the recommendations of the 7th Pay Commission on Wednesday. There are several senior government officials will get a higher pay than lawmakers in Parliament.
The Union cabinet set to take up the recommendations will result in a hike in pension payouts of around 58 lakh pensioners and salaries of around 50 lakh central government employees.
Government approved salaries and pension hikes based on 7th Pay Commission
A Pay Commission is decade to revise the salary structure of its employees and it is constituted by the central government. Each pay commission has a Terms of Reference (ToR) for revising the salary structure of employees and pension payments.
According to 7th Pay Commission recommended salaries and allowances of the government employees will rise by at least 23.5 percent effective January 1, 2016. The previous 6th Pay Commission had recommended salaries hike a 20 per cent, which the government doubled while implementing it in 2008.
As per government estimates, the total financial impact of implementing of the pay commission recommendations fiscal is likely to be Rs 1,02,100 crore in the 2016-17. The Employees of gramin dak sevaks, Public Sector Undertakings (PSU) and autonomous bodies are not under the 7th Pay Commission.
Under the new scheme, the maximum salary for a government servant will be about 2.5 lakhs a month, that’s more than double the highest pay of Rs. 90,000 a month. The minimum pay recommendation is Rs. 18,000 per month. This too is more than double of the present Rs. 7,000.
The Pay Commission’s recommendations also influence wages of employees of local bodies, 29 states, and state-owned firms. The 7th Pay Commission assigns 18 levels for designating the functional role in an organisation’s hierarchy. For instance, a promotion may shift you from level 10 to 12, with a salary depending upon your experience.
News first published on June 29, 2016.