Joy for Govt employees/ pensioners: 15% hike in salary/ pension!

The Commission will submit its final report to the Finance Minister Arun Jaitley on Thursday (November 19) recommending increase in remuneration of central government employees as well as pensioners.

The 7 Pay Commission Report has been the talk of the town since few days.

Sources indicate that this commission is unlikely to be as benevolent as the Sixth Pay Commission and the hikes in salaries are not expected to go beyond a 15 per cent hike. According to various sources, the Commission is likely to put forward the recommendation of increasing the salaries by 15%. The commission, headed by Justice A K Mathur was formed in February 2014. As of now this is controlled by IAS officers and has no representation from any other service. If the central cabinet grants its approval soon, the recommendations may be effected from January 1, 2016.

The central government constitutes the pay commission every 10 years to revise the pay scale of its employees and often these are adopted by states after a few modifications.

The decision, if implemented, will be effective from January 1, 2016 and nearly 40 lakh serving Central government employees and more than 55 lakh pensioners will be benefited. According to certain economists, a hike in salaries might also result in a boost in fiscal pressures and inflation. Due to official wrangling the government extended the deadline and asked the panel to submit its report by December 2015.

Central Government employees are concerned about their increment.