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7th Pay Commission likely to recommend 15% average hike in salary

Arun Jaitley

New Delhi: The 7th Pay Commission is likely to recommend an average 15 percent hike in salary which is due for implementation from January 1, 2016.

The Commission will submit its final report to the Finance Minister Arun Jaitley on Thursday (November 19) recommending increase in remuneration of central government employees as well as pensioners.

“We are ready with the report and will submit it on November 19,” the Commission’s Chairman Justice A K Mathur told PTI.

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 pay panel was asked to submit its report within 18 months of its formation. However, the Union Cabinet had extended the term of the panel in August by four months to December.

Its recommendations will also have a bearing on the salaries of the state government staff.

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

As part of the exercise, the commission holds discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services.

The recommendations of the 7th Pay Commission are scheduled to take effect from January 1, 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 6th Pay Commission was implemented with effect from January 1, 2006; the 5th from 1 January 1996, and the 4th from January 1, 1986.

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