7th Pay Commission: Fitment committee suggests 14.5 per cent hike, what to expect on June 25

Meanwhile the Fitment Committee has prepared its report and submitted it to the Odisha Government.

With the Cabinet set to discuss the recommendations of the 7th Pay Commission after June 25, here is a list of what central government employees can expect on revised allowances and HRA.

The Cabinet which was scheduled to meet on Wednesday will now do so only after June 25 as it is International Yoga Day. Moreover Finance Minister Arun Jaitley is out of the country and will return only by June 25.

What to expect?

Government is likely to hike HRA for central government employees under the revised 7th Pay Commission allowances. At the next Cabinet meeting, speculated to be held on Monday, the government is likely to take up discussions on revised HRA.

The Committee on Allowances has recommended HRA to be fixed between 25-27% as against demands of 30%. The panel, however, had recommended that HRA be paid at 24%, 16% and 8%.

Pay hike

Meanwhile the Fitment Committee has prepared its report and submitted it to the Odisha Government. The committee has recommended to raise the basic pay of each employee roughly by 14.5 per cent. If the State government follows the Central government pattern for implementing pension, the overall salary will increase by 23 per cent. The employees can expect the pay hike by Durga Puja.

Arrears in batches

The hiked salary will be implemented starting January 2016 but employees may not get the arrears at once. The arrears will be paid in installments over three years, OTV reported.

Load on exchequer

The implementation of the pay hike will increase the burden on the exchequer of the state by 5,500 crore. However, as per experts, the government is bound to put into effect the recommendations of the 7th Pay Commission Commission as it would not want its employees to be disappointed.

OneIndia News