The Central government may soon announce the implementation of 7th Pay Commission that would hike the salaries and allowances for over 1 crore government employees and pensioners by at least 23.5 percent.
But the disbursement of allowances might dishearten the government employees. It is to be noted that the pay increases recommended in the 7th Pay Commission report will be effective from January 1 but the government is planning to disburse allowances only prospectively.
This means that the disbursement of increased allowances will not take place from January 1.
The Pay Commission had recommended overall hike of 23.55 percent in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 percent of the GDP. The 23.55 percent increase includes hike in allowances.
The entry level pay has been recommended to be raised to Rs 18,000 per month from current Rs 7,000. The maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.