seventh pay commission
Finance Minister Arun Jaitley and Justice AK MathurANI/Twitter

The Seventh Pay Commission headed by Justice AK Mathur submitted its report to Union Finance Minister Arun Jaitley on Thursday, said reports.

The recommendations of the panel will be implemented from 1 January 2016. An estimated 47 lakh serving central government employees and 52 lakh pensioners will be benefited it the recommendations are implemented.

The Commission has also recommended a virtual one-rank-one-pension (OROP) for central government employees and armed forces.

In percentage terms, the overall increase in pay, allowances and pension will be 23.55%. There would be 16% increase in pay, 63% in allowances and 24% in pension, while an annual increment of 3% has also been recommended.

The report, which is around 900 pages, was compiled after hearing from all parties and observing the hardships of people across the nation, said Commission chairman Justice Mathur.

Panel secretary Meena Agarwal, retired IAS officer Vivek Rae and economist Rathin Roy are also members of the Commission, which was set up by the UPA government in February 2014.

The minimum pay in the central government is recommended to be set at Rs 18,000 per month while maximum pay is recommended as Rs 2,25,000 per month for Apex scale and Rs 2,50,000 per month for Cabinet Secretary and others at the same level.

In 2008, there was a 35% salary hike with the implementation of the Sixth Pay Commission.

The total monetary impact on finances of the central exchequer will be Rs 1,02,000 crore during next fiscal year, said minister Jaitley.

In order to implement the pay commission recommendations, a secretariat will be set up under the expenditure secretary, he added.

The Commission also recommended a revised pension formulation for civil employees including the Central Armed Police Forces (CAPF) and the Defence Personnel, who will retire before 1 January 2016.

Jaitley sad the government will take a final decision, after examining the recommendations expeditiously.

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