Here comes a good news for all the Central government employees. The Seventh Pay Commission is likely to recommend a substantial pay hike.The Seventh Pay Commission have submitted its report to union finance minister Arun Jaitley recommending hike of 23.5 percent. This percentage cent will likely include a 16 per cent raise in basic pay and up to 25 per cent increase in allowances.The central government constitutes the pay commission every 10 years to revise the pay scale
The Commission was set up by the UPA government in February 2014 and the panel is headed by former Supreme Court judge Justice Ashok Kumar Mathur.The Union Cabinet had extended the term of the panel in August by four months, till December. The decision will help nealry 50 lakh central government employees and 55 lakh pensioners.The recommendations of the 7th Pay Commission are scheduled to take effect from January 1, 2016. The Sixth Pay Commission was implemented with effect from January 1, 2006, the fifth from January 1, 1996 and the fourth from January 1, 1986.