Central government employees are set to get higher salary based on the recommendations of the Seventh Pay Commission after the Finance Ministry notified the revised pay grades.

The Union Cabinet had on June 29 cleared the proposals of the Pay Panel for salaries and pensions while deferring a decision on allowances.

“With regard to fixation of pay of the employees in the new Pay Matrix as on January 1, 2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre—revised structure as on December 31, 2015, shall be multiplied by a factor of 2.57,” the notification said.

The revised pay grades, which will be applicable from January 1, 2016 will be reflected in the salaries of August. The minimum pay of Central government employees will now be ₹18,000 per month while at the highest level, it will be ₹2.5 lakh per month.

Employees will be entitled to an annual increment on either January 1 or July 1 every year, depending on the date of appointment, promotion or grant of financial upgradation.

The decision, which will impact 47 lakh Central government employees and 53 lakh pensioners, will have a total bearing of ₹ 1,02,100 crore on the exchequer this fiscal.

“The Government has not accepted the recommendations of the Commission on downgrading of posts and normal replacement will be provided in such cases,” the notification said, adding that a Committee of Secretaries would suggest measures for streamlining the implementation of the National Pension System.

The Department of Personnel and Training will also set up an Anomalies Committees to review individual, post-specific and cadre-specific anomalies from the implementation of the recommendations of the Commission.

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