The Finance Ministry has issued a notification for the implementation of the 7th Pay Commission recommendations, reported The Indian Express. According to the notice, dated July 25, 2016, central government employees will get new hiked salaries from August. Remunerations will go up by 23.6%.
The notice states that the new pay structure will be effective from January 2016, and the arrears will be paid during this financial year – 2016-'17. Following the panel's recommendations, approved by the Cabinet in June, nearly one crore government employees, including pensioners were given a raise in their monthly salaries. The panel had proposed a minimum monthly basic salary of Rs 18,000 and a maximum of Rs 2,50,000.
The Centre’s total expenditure on salaries and pensions is expected to jump by Rs 1.02 lakh crore, including Rs 28,450 crore in the Railway Budget. The implementation of the recommendations is also expected to have a considerable impact on inflation.