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  3. Govt notifies 7th Pay Commission's recommendations of hike in salaries

Govt notifies 7th Pay Commission's recommendations of hike in salaries

27 Jul 2016 Evaluate
Clearing the final hurdle towards payout of the 7th Pay Commission hike in salaries, the government notified the panel’s recommendations. The government has notified a 2.57-time hike in basic salary of one crore government employees and pensioners following implementation of the 7th Pay Commission Recommendations. Central government employees will now get the revised pay from their August salaries.

The notification comes nearly a month after the Union Cabinet on June 29 cleared the Commission’s recommendation on salary hike, which will cost the exchequer annually Rs 1.02 lakh crore. As per the government’s notification, the minimum pay in central government with effect from January 1, 2016 will now be Rs 18,000 per month, up form Rs 7,000 per month. At the highest level of Cabinet Secretary, the salary would go up from Rs 90,000 a month to Rs 2.5 lakh.

As regard the fixation of pay of the employee in the new Pay Matrix as on 1st day of January, 2016, the existing pay in the pre-revised structure as on 31st day of December, 2015 shall be multiplied by a factor of 2.57. The notification said as regards to the annual increment, instead of the earlier July 1, now there will be two dates of January 1 and July 1. In a year the employee will be entitled for increment at one of these dates depending on his date of appointment, etc. The notification further said that the employees will be entitled to only one annual increment on either of these two dates depending on the date of appointment, promotion or grant of financial upgradation.

For maintaining existing formula and methodology for calculating Dearness Allowance, the government notification stated, 'The reference base for calculation of Dearness Allowance after coming into force of the revised Pay structure shall undergo change accordingly and will be linked to the average index as on January 1, 2016 and added that till final decision is taken all allowances will continue to be paid at existing rates in existing pay structure.

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