Published On: Tue, Aug 25th, 2015

Seventh Pay Commission gets one-month extension

New Delhi: The Seventh Pay Commission, headed by justice A K Mathur has got a one-month extension from the finance ministry.

Seventh Central Pay Commission team headed by its Chairman Justice A K Mathur (siting in centre).

Seventh Central Pay Commission team headed by its Chairman Justice A K Mathur (siting in centre).

“We got one moth extension, we will submit our report on raising the salaries and allowances for central government employees to the finance minister at the end of September,” an official of the commission said, speaking on condition of anonymity.

Nearly 90 per cent of government employees work in the armed and paramilitary forces, while others are in railways and postal department.

Sources said that the Commission was hoping that the government would take a call on One Rank One Pension, so they could modulate their own formulation in terms of pay revision.

The Commission is also expected to take a call on lateral entry and performance based pay, which has been discussed for years, but with no real solution.

The previous government appointed the Seventh Pay Commission on 28 February 2014 and was asked to submit its report in 18 months, which falls on 31 August.

The Sixth Pay Commission had submitted its report a little ahead of its deadline on 24 March 2008.

The revised pay scales were implemented retrospectively starting 1 January 2006, while recommendations relating to allowances were implemented prospectively.

The Seventh Pay Commission is expected to hike the salaries of the central government employees by up to 40 per cent.

“As the Pay Commission numbers come through there could be a 30-40 per cent increase for each individual,” Neelkanth Mishra, India equity strategist at Credit Suisse, told NDTV.

Sources said the commission has to make the recommendations taking into consideration a six-member family’s expenditure, including two children, parents and spouse.

Accordingly, commission will recommend hiking allowances like, health, insurances and education allowance for children.


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