The Seventh Central Pay Commission (CPC), whose report is to be submitted today, is said to have recommend a net increase of 22 percent over the current pay package of Central government employees with a 15 per cent hike in basic pay and up to 25 per cent escalation in allowances. The net increase may be 22 percent after subsuming the current 119 percent dearness allowance in the new basic and grade pay scale, according to calculations done by the CPC. If one goes by what the government did in the case of recommendations of the last two Pay Commissions, it could grant another 5-6 per cent rise to take the total rise to 30 per cent.
At this, it would be lower than the 35 percent hike in salaries effected by the Sixth Pay Commission in 2008.
The approval process for the 7th CPC recommendations could take a minimum of four months. Since the hike in salaries will be effective from January 2016, the arrears could be transferred as employees’ savings into the pension fund. The Controller General of Accounts is said to be considering several options for investing Seventh Pay Commission arrears.