The Government of India has approved the recommendations of the 7th Pay Commission for the central government employees. The expected total hike in the salary is 23.55 percent and the burden on the central exchequer is more than Rs. 1 lakh crore. Following are important points with regard to 7th pay commission.
1) Implementation date: 1st January 2016
2) Hike in salary: 16 percent
3) Hike in allowances: 63 percent
4) Hike in pension: 24 percent
5) Annual increment: 3 percent
6) Total hike in salaries: 23.55 percent.
The burden on the finances of the Central Government for the year 2016-17 due to implementation of 7th pay commission recommendations is Rs. 1,02,110 crores. This is 0.65 percent of the GDP.
Out of the total burden on finances, Rs, 39100 crores are for salaries, 29300 is for allowances and 33700 crores is for pensions. Regarding allocations, Rs. 73650 crores will be allocated from general budget and remaining Rs. 28450 crores will be allocated from Railway budget.