7th Pay Commission: Govt issues notification, lakhs of employees to benefit

Government has notified revised pay grades for the implementation of the 7th Pay Commission recommendations, giving nearly 10 lakh government employees 2.57 times hike in basic pay.

The minimum pay in central government with effect from January 1, 2016 will now be Rs 18,000 per month; at the highest level, it will be Rs 2.5 lakh.

“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.

Explained: 7th pay commission pay matrix

There shall be two dates for grant of increment - January 1 and July 1 every year - instead of the existing July 1 only. Employees will be entitled to only one annual increment on either of these two dates depending on the date of appointment, promotion or grant of financial upgradation, it said.

The Cabinet had last month decided on pay increase for central government employees and pensioners, that is estimated to cost the exchequer Rs 1.02 lakh crore annually.

Read: Seventh pay panel: Centre clears big hike for staff to boost spending