7th Pay Commission: All you need to know about benefits, implications

The Cabinet is likely to clear the Seventh Pay Commission report and its recommendations today (Wednesday), say media reports.
1) The recommendations

The Pay Commission recommended 23.55 percent overall increase in salaries, allowances and pension.

The panel recommended a 14.27 percent increase in basic pay, the lowest in 70 years. (The 6th Pay Commission recommended 20 percent hike.

The minimum pay in government is recommended to be set at Rs 18,000 per month.

Of the total financial impact of Rs 1,02,100 crore, the increase in pay would be Rs 39,100 crore, increase in allowances Rs 29,300 crore and increase in pension Rs 33,700 crore.

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2) Implications for economy

The Pay Commission recommendations, once implemented, are expected to boost the consumption demand, and in turn growth.

Above all, a PTI report said citing sources that the secretaries’ panel may have recommended higher pay increase, with minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.


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