Pay Commission recommends 16 percent salary hike

New Delhi, Nov 19 (IANS) An estimated 47 lakh serving central government employees and 52 lakh pensioners, including defence personnel, on Thursday had reasons to cheer with the 7th Pay Commission recommending a 16-percent salary hike.

Pay Commission chairman Justice A.K. Mathur who submitted the report to Finance Minister Arun Jaitley here on Thursday said the proposals will entail an outflow of Rs.102,100 crore from the exchequer during the next fiscal.

The commission also recommended a 24-percent hike in pension, besides a minimum pay of Rs.18,000 per month for all entry-level employees and Rs.2.5 lakh for the seniormost serving officer, the cabiner secretary.

“The increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent,” Justice Mathur said, adding that an annual increment of 3 percent has also been recommended.

Soon after the submission of the report, Jaitley told reporters here that a secretariat to implement the pay commission recommendations will be set up under the expenditure secretary.

A separate empowered committee of various departments will examine the recommendations.

“The recommendations will be examined expeditiously and the government will take a final decision,” Jaitley added.

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