29/06/2016 2:12 PM IST | Updated 15/07/2016 8:27 AM IST

Cabinet Approves 7th Pay Commission, To Benefit Over 1 Crore Govt Employees And Pensioners

Indian Prime Minister Narendra Modi, third right, talks with Indian Finance Minister Arun Jaitley during a meeting of ruling National Democratic Alliance lawmakers in New Delhi, India, Tuesday, March 1, 2016. The meeting was to discuss attacks from the opposition on various issues and to thank Modi and Jaitley for presenting the federal budget. (AP Photo/Manish Swarup)

NEW DELHI -- Recommendations of the 7th Pay Commission got the Cabinet nod on Wednesday, which will benefit over one crore government employees and pensioners.

The decision to this effect was taken in a meeting which was chaired by Prime Minister Narendra Modi, sources said.

The pay panel, in November last year, had recommended a 14.27 per cent hike in basic pay at junior levels -- the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

The government in January had set up a high-powered panel under the Cabinet Secretary to process the recommendations of the 7th Pay Commission that will have a bearing on remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

The Commission had recommended a 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore, or nearly 0.7 per cent of GDP.

The entry-level pay has been recommended to be raised to Rs 18,000 per month, from the current Rs 7,000, while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from the current Rs 90,000.

While the Budget for 2016-17 did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.

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