Big Hike to Central Government Staff

November 20, 2015 Hot from the Oven Valli Sarvani No comments

Employees of Central Government have a reason to rejoice. The Seventh Pay Commission, in a big bonanza, has recommended a 23.55 per cent increase in salary, hike in allowances and pension along with a virtual one rank one pension for central employees and pensioners. This new bonus will result in an additional outgo of Rs. 1.02 lakh crore every year.

The commission has recommended that there be a minimum pay of Rs. 18,000 per month and a maximum pay of Rs. 2.5 lakh per month for central government employees. The commission which is headed by Justice A K Mathur has presented this in a 900 page report to Finance Minister Arun Jaitley.

The Seventh Pay Commission has also proposed to improve the Central Government Health Scheme so as to cover both in-patient and OPD treatment. They stated that this will be helpful for pensioners who are living in areas which do not have CGHS dispensaries. This way, they would be able to get access to empanelled hospitals and get treatment without paying.

According to the report of the Seventh Pay Panel, the pay will increase by 16 percent and allowances will be increased by 63 percent. The pension will increase by 24 percent. The report will be implemented from January, 1, 2016.

As per the report, the minimum basic pay for central government staff is recommended at Rs 18,000; the maximum pay recommended is at Rs 2.25 lakh per month. The Pay Commission has also recommended a 3% annual increment and 24% hike in pension for central government staffers.

There will be a FY17 impact of Rs 1.02 lakh crore from implementation of the 7th Pay Commission. For the staff of central government, One Rank One Pension has been recommended along with armed forces. This recommendation will impact 47 lakh serving government employees, 52 lakh pensioners which includes defence personnel.

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