The government has notified a 2.57- time hike in basic salary of 10 million government employees and pensioners following the implementation of the Seventh Pay Commission recommendations. The recommendations, which will cost the exchequer annually Rs.1.02 lakh crore, were notified in a gazette on Monday. The minimum pay in central government with effect from January 1, 2016 will now be Rs. 18,000 per month, up form Rs. 7,000 per month. At the highest level of Cabinet secretary, the salary would go up from Rs.90,000 a month to Rs.2.5 lakh. There shall be two dates for grant of increment — January 1 and July 1 every year — instead of the existing July 1 only. Employees will be entitled to only one annual increment on either of these two dates, depending on the date of appointment, promotion or grant of financial upgradation, it said. The Union Cabinet had last month accepted the recommendation of Justice A K Mathur headed panel in respect of the hike in basic pay and pension but a decision on its suggestions relating to allowances has been referred to a Committee headed by Finance Secretary. The pay commission had recommended abolition of 53 out of 196 allowances that the government employees currently get and moderation in several others
Business Standard New Delhi,27th July 2016
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