It's a good time to be a govt employee: Centre implements the 7th Pay Commission

Central government implements the 7th Pay Commission; even the retired employees will reap rich dividends

New Delhi: Finance Minister Arun Jaitley yesterday said the government decision to implement the recommendations of the 7th Pay Commission will benefit over one crore central government employees and pensioners, and added that the additional expenditure had been provided for in the Union Budget.

Finance Minister Arun JaitleyFinance Minister Arun Jaitley

The Finance Minister said the government is ‘not surprised’ at the additional expenditure, which is estimated at Rs 1,02,100 crore as per official estimates. "I have provided for these in the budget so the figures are not a surprise," Jaitley told a press conference after the Union Cabinet, chaired by Prime Minister Narendra Modi, gave its nod to the recommendations of the 7th Pay Commission headed by Ashok K Mathur.

He also said that by and large the government has decided to accept the recommendations of the pay panel and the date of implementation for the recommendations is January 1, 2016.

"Minimum pay of a government servant will now be Rs 18,000 per month," he said, adding that the arrears will be paid this financial year itself. "The government’s decision to implement the pay panel’s report and pay higher salaries was guided by the conviction that the government employees’ salaries should be respectable."

He said, "I am not talking only of employees at senior level but at all levels."

Who will benefit

47 lakh government employees

53 lakh pensioners (govt staffers)

14 lakh serving defence personnel

18 lakh pensioners (defence)

Ceiling raised
Jaitley said the gratuity ceiling has been doubled to Rs 20 lakh and housing loan allowance hiked from Rs 7.5 lakh
to Rs 25 lakh.

Rs 2.50 lakh Monthly salary recommendation for the Cabinet Secretary and others at the same level

Rs 18,000 Revised minimum salary of a government employee as per the 7th pay commissio

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