New Delhi: Justice AK Mathur has submitted the 7th Pay Commission report to Union Finance Ministry Arun Jaitley on Thursday recommending a 16% hike in basic pay, which is going to benefit nearly 50 lakh central government employees.
The commission recommended 138.71% hike in housing rent allowance, while other allowances and pensions recommended for a hike of 49.79% and 23.63% respectively.
It also suggested increase in house rent and other allowances that will result in an effective 23.51% increase in salaries of central government employees. The total increase, including the additional outgo on account of pensions, is estimated to be 23.55%.
The recommendations of the 7th Pay Commission is likely to be effective from January 1, 2016 and will benefits nearly 40 lakh serving Central government employees and more than 55 lakh pensioners.
While addressing a press conference, Justice Mathur said, "Total financial impact in FY 2016-17 likely to be Rs 1,02,100 crore expenditure as per business as usual scenario. The minimum pay in the government is recommended to be set at Rs 18000 per month and I have abolished 52 allowances and have recommended steps to improve national pension scheme."
"In the 900-page report of 7th Pay Commission, we've heard all parties, seen hardships of people," said Justice Mathur.
The other members of the commission are Vivek Rae, a retired IAS officer of 1978 batch, Rathin Roy, an economist and Meena Agarwal, secretary of the commission.
On February 2014, the commission was set up by the UPA government to revise the remuneration of government employees and pensioners.
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