Increment in employees’ salaries - Fusion - WeRIndia

Pay Commission’s report on hiking central government employees’ salaries

Pay Commission's report on hiking central government employees’ salaries

Good news to all central government employees. There will be an increase in their remuneration. This is applicable to employees as well as pensioners. The increase will be done according to the report of 7th Pay Commission. According to the Commission’s Chairman Justice A K Mathur, the report is ready and will be submitted this week to Finance Ministry.

UPA government set up the Seventh Pay Commission in 2014 to revise the remuneration of 48 lakh central government employees and 55 lakh pensioners. The Commission is headed by Justice A K Mathur.

Earlier in 2008, the 6th Pay Commission had suggested 35 per cent increase in the remuneration of central government employees. But, according to sources, the hike will be 15 per cent in salary as per the 7th Pay Commission.  The recommendations of 7th Pay Commission need to be approved by the Union Cabinet. Only then will they come into force.

After the approval of Union Cabinet, the recommendations of 7th Pay Commission are to be implemented from January 1, 2016. However, certain difficulties exist in the method of pay parity. Furthermore, the financial burden on the exchequer will be increased. Already, due to OROP (One Rank One Pension) government is facing financial burdens. The expenditure on OROP was increased by 0.06 per cent of GDP. If the 7th Pay Commission’s recommendation are approved, there will be a further rise of 0.2 per cent in India’s GDP. This is according to the estimation of Bank of America Merrill Lynch.


In this context, Central Government employees are very much concerned about their increment. This is due to the sayings that that their increment will be performance based to some extent and the duration of their service could be reduced. As per the sources, the Commission will submit a report on pay hike but it is not likely to recommend changes in the retirement age of the employees.

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