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Cabinet approves 7th Pay Commission panel report on salary hikes of for 1 crore central government employees

The cabinet has approved the salary hikes of over 1 crore central government employees and pensioners on Wednesday.

The report submitted by the 7th Pay Commission Panel recommended a near 15% hike in basic pay of central government employees, including the armed forces, the police force, and more, and the overall hike will be 23.55%, which has been approved after much ado.

This will result in an outlay of over Rs 1.02 lakh crore into the economy, and will impact the monthly salaries of over 47 lakh central government employees and 52 lakh pensioners. Of this, Rs 39,100 crore would be for salaries and Rs 29,300 will be for pensions.

The Empowered Group of Secretaries has recommended a wage hike of Rs 21,000 and Rs 2.7 lakh for the lower and upper level, respectively. This is Rs 3,000 more for the lower level and Rs 20,000 more for the upper level prescribed by the 7th CPC.

The financial impact of the 7th Pay Commission hikes will be borne by government — Rs 73,650 crore — set aside in the General Budget earlier this year, and Rs 29,300 crore will be borne by the Railways, set aside in the Railway Budget.


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