Union Cabinet gives nod to the 7th Pay Commission

New Delhi: The much awaited 7th Pay Commission gets its green nod from the Union cabinet today which was headed by Prime Minister Narendra Modi which will hike salary and allowance of central government employees and pensioners by 23.5 percent.

India’s Finance Minister Arun Jaitley told media persons that, “The recommendations of the Pay Commission with respect to pay and pension have been accepted by and large by the government. And those recommendations will be implemented with effect from January 1, 2016, and the arrears would also be paid in this year.”

The Committee headed by Finance Secretary has been referred to take decision on pay panel suggestions relating to allowance.

The FM said that the government is not surprised at the further expenses, which is estimated at Rs 102, 100 crores as per official guesstimate.

He further said, the Cabinet has also decided to pay the arrears of pay and pensioners during the current financial year (2016-17), unlike in the past arrears were paid in the next financial year.

The new pay scales for entry level will provide basic pay salary which is going to up from Rs 7,000 per month to Rs 18,000 and at high level for example Secretary; it will go up from Rs 90, 000 to Rs 2.5 lack and for Class 1 officer it will star from Rs 56, 100.

This 7th Pay Commission will benefit over 1 crore employees which includes over 47 lakh central government employees and 53 lakh pensioners of which 14 lakh employees and 18 lakh pensioners are from the defence forces.