The government issued an implementation notification on Tuesday.
The Ministry of Finance has released an implementation notification of the 7th Pay Commission on Tuesday, according to a report by The Indian Express.
The final recommendations made by the 7th Pay Commission Panel were accepted by the Union Cabinet earlier this month, with the minimum pay revised to Rs 18,000 from the earlier Rs 7,000.
According to the implementation notification, the report says, the revised hiked salaries will be paid from the August salaries.
The government said it has accepted the Commission's recommendations about minimum pay, fitment factor, index of rationalisation, pay matrices, and general recommendations on pay.altercations.
With this, the salaries of over one crore government employees will be hiked, giving a much-needed boost to demand in the economy.
The report submitted by the 7th Pay Commission Panel recommended a near 15% hike in basic pay of central government employees, including the armed forces, the police force, and more, and the overall hike will be 23.55%, which has been approved after much ado.
"Considering the tight fiscal position this year, the government may improve upon the Pay Commission recommendation for basic pay to 18% or at best 20%," a senior official said.
The government will bear an outlay of Rs 1.02 lakh crore which will impact the salaries of 47 lakh central government employees and 52 lakh pensioners. Out of the today outlay, Rs 39,100 crore will be for salaries and the remaining Rs 29,300 crore for pensions.
The 7th Pay Commission will be applicable with retrospective effect, which means, the government employees will also get their arrears from January 1. The arrears will be paid in the financial year 2016-17, the notification said.
According to the gazette notification, the dates for grant increment pay have been increased to two from the current one -- ie January 1 and July 1 -- however, an employee will be eligible only for one annual pay increment on either of the two dates depending on his/ her date of appointment, joining, promotion or grant of financial up-gradation.
Allowances
The recommendations made on Allowances (except Dearness Allowance) will be referred to a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members. The Committee will submit its report within a period of four months.
Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016, the notification said.
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