Pay hike proposed by the 7th Pay Commission has finally become a reality after the Union Cabinet approved it in Wednesday.
Over 1 crore government employees and pensioners will now get at least 23.5 per cent hike retrospectively from January 1.
The decision was taken after a committee of secretaries headed by P K Sinha submitted a detailed report on the recommendations of the 7th pay commission submitted to government in November 2015.
Before finalising the report, the committee held last round of consultations with employee-union representatives who have decided to go on strike from July 11.
“Government had taken a decision with regard to the 2.7 percent fitment without following proper procedure and this would adversely affect the interests of the employees. We are expecting announcement soon,” said Nageswara Rao who is the General Secretary of the central government workers and employees confederation.
The government had in January set up a high-powered panel headed by Cabinet Secretary to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.
The Pay Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension.
It is reported that the secretaries’ panel wants higher pay increase in the proposed 7th pay commission hike, with minimum entry level at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.
While the General Budget of 2016-17 did not provide a separate allocation for the 7th Pay Commission, government had said that an interim allocation for different ministries will fill in for hike in salaries.
“Around Rs 70,000 crore has been provisioned in the Union Budget 2016-17 for the implementation of the Seventh Pay Commission for government employees, “a finance ministry official said.
The government had set up a panel headed by Cabinet Secretary P K Sinha to process the recommendations of the Seventh Pay Commission in January this year.
The Seventh Pay Commission in November last year submitted a report recommending 23.6 per cent increase in pension and salaries of central government employees.