Seventh pay commission likely to propose 23% salary hike for govt staff: Report

New Delhi, Nov 19: In a bonanza for central government employees, the Seventh Pay Commission is likely to recommend on Thursday, a 22-23% jump in their salary and allowances, people familiar with the matter said.

The Pay Commission headed by Justice A.K. Mathur has suggested a 15% increase over the basic salary plus dearness allowance (DA) for the central government staff, they said, adding that an increase in allowances like house rent allowance (HRA) has also been recommended.

The total increase will be 22-23% of the gross salary (basic plus DA plus allowances), the sources said. The recommendations of the Seventh Pay Commission are scheduled to take effect from 1 January 2016.

Besides chairman, other members of the commission are Vivek Rae, a retired IAS officer of 1978 batch, and Rathin Roy, an economist. Meena Agarwal is secretary of the commission.

The central government constitutes the pay commission every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications.

The commission was set up by the UPA government in February 2014 to revise remuneration of about 48 lakh central government employees and 55 lakh pensioners.

The Union cabinet had extended the term of the panel in August by four months, till December. The 6th Pay Commission was implemented with effect from 1 January 2006.

PTI