The Union Finance Ministry has cleared the Seventh Pay Commission recommendations on Wednesday. The Commission, headed by Justice AK Mathur, had presented its 900-page report to Finance Minister Arun Jaitley on 19 November 2015.
The recommendations were submitted with an aim of implementing it starting 1 January 2016.
The recommendations will impact some 47 lakh central government employees and 52 lakh pensioners.
Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent and increase in pension would be 24 percent.
The minimum pay in government is recommended to be set at Rs 18,000 per month. 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.
The hike will add a burden of worth Rs 1 lakh crore to the pockets of taxpayers.
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