The Union Cabinet on Wednesday approved the recommendations put forward by the Seventh Pay Commission Report which will result in increase in salaries and pension amounts of serving and retired central government employees, respectively, officials said.
The Union Cabinet, chaired by Prime Minister Narendra Modi, met to take the decision which will have a direct impact on nearly 47 lakh serving employees in the central government and 52 lakh pensioners. The commission had recommended a minimum emolument amount of Rs 18,000 per month while the maximum salary was capped at Rs 2.25 lakh per month.The report recommended the salary amount for Cabinet Secretary and persons at the same pay level in the government at Rs 2.5 lakh per month.
An empowered Committee of Secretaries under Cabinet Secretary P.K. Sinha was formed by the government in January to evaluate the Pay Commission's recommendations. The recommendations will be applicable from 1 January 2016. The total financial bearing for implementing the recommendations for the 2016-17 fiscal is estimated to be around Rs 1,02,100 crore, according to official estimates. Out of this amount, the total increase in salary amount will be around Rs 39,100 crore, increase in allowances will take up another Rs 29,300 crore while pensions will entail an expenditure of Rs 33,700 crore.