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Pay panel moots 23.5% hike, to cost govt. Rs 1.02 lakh cr.

Union Finance Minister Arun Jaitley receives the Seventh Pay Commission Report from the chairman, Ashok Kumar Mathur, in New Delhi on Wednesday.— Photo: R. V. Moorthy

Union Finance Minister Arun Jaitley receives the Seventh Pay Commission Report from the chairman, Ashok Kumar Mathur, in New Delhi on Wednesday.— Photo: R. V. Moorthy  

: In its report submitted to the Union Finance Minister Arun Jaitley on Thursday, the Seventh Central Pay Commission has recommended an overall increase of 23.55 per cent in pay, allowances, and pension for government employees. Within this, the Commission’s report recommends a 16 per cent increase in basic pay, a 63 per cent increase in allowances and a 24 per cent hike in pension. The recommendations are to come into force on January 1, 2016.

“This will impact 47 lakh employees and 52 lakh pensioners. The total monetary impact on the central government would be Rs 1.02 lakh crore. Around Rs 74,000 crore would be the impact on the Union Budget and Rs 28,000 crore on the Railway Budget,” Mr Jaitley said at his residence after he received the report from Justice A.K. Mathur, Chairperson of the Commission. Mr Jaitley said the impact of the recommendations amounts to 0.6 per cent of GDP, adding that while the government would review the report soon, the State governments would take their own view on it.

The report also recommends an annual increment of 3 per cent in basic pay.

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