The Union Cabinet, on Wednesday, cleared a report submitted by the 7th Central Pay Commission (CPC) on the salary hike of Central Government employees.
Finance Minister, Arun Jaitley gave insights into the report submitted by the Commission and emphasised that the most of the pay and pension recommendations were accepted by the cabinet.
With regards to the 6th CPC, “a categorisation was followed and the indexing of the basic salary was increased by 2.57 times”, Jaitley said.
The recommendations will be implemented from 1 Jan 2016. The arrears will also be paid this year since it is the end of June.
The 7th CPC covers 47 lakh central government employees and 53 lakh pensioners, among which, 14 lakh serving and 18 lakh pensioners are from the Defence sector.
The least salary for government employees was Rs 7,000. With the 2.57 index it is now Rs 18,000. The starting salary of Class 1 employees is now Rs 56,100.Arun Jaitley, Union Finance Minister
The 7th CPC also commissioned IIM Ahmedabad in a study to compare government and private salaries. Jaitley said that with respect to the salaries in the private sector, the government salaries have been made “more respectable” now.
The annual burden of the 7th CPC on the taxpayer is now Rs 1,02,100 crores.
(With inputs from ANI)
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