7th Pay Commission: 20% hike likely for Govt employees

The Central govenment is likely to announce the implementation of the 7th Pay Commission recommendations soon after a panel headed by Cabinet Secretary Pradeep Kumar Sinha to examine the proposals submitted its report. 

"Committee of secretaries has finalised its report on pay commission recommendations... We will soon draft a Cabinet note based on the report," The Times of India reported on Tuesday quoting Finance Secretary Ashok Lavasa as saying. 

According to the news report, the proposal is likely to be taken up by the Cabinet later this week.

"We will soon announce it. The increase would be a little below 20%," the report said quoting a source who did not elaborate further on the hike. 

The Centre has said adequate provisions have been made in the Union Budget 2016-17 to absorb the impact recommendations. 

The government had in January set up a high-powered panel headed by Cabinet Secretary Pradeep Kumar Sinha 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, PTI reported on Monday. 

The Pay Commission had recommended 23.55% overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7% of the gross domestic product (GDP), the news agency said. 

The previous 6th Pay Commission had recommended a 20% hike which the government doubled while implementing it in 2008.