Finance Minister Arun Jaitley on Thursday said that the total monetary impact on the finances of the Union Government of the seventh pay commission report will be approximately Rs1,02,000 crores.
Justice A. K. Mathur, who heads the seventh pay commission, submitted its report to Finance Minister Arun Jaitley today.
"Total monetary impact of this on finances of Union Government entirely is Rs 1, 02,000 crores. Of this Rs 74,000 crore is the impact on the union budget and Rs 28,000 crores is the impact on the railway budget. This is jointly on the Union government, amounts to 0.65 per cent of the GDP. The salary and pension bill goes up by that," Jaitley told the media here.
"In case of union budget it goes up by 0.46 percent and in case of railways, the balance is going to be subsumed. This is the monetary impact of the recommendations to be made," Jaitley added.
Jaitley also extended his gratitude to justice Mathur and his team for submitting the recommendations after a lot of effort over the last 24 months.
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"The Government of India had constituted the 7th pay commission in 2014, giving it 18 months time to submit its report. The original period was upto August 27, 2015. The time has been extended inorder to enable the pay commission to have further consultations and submit a considered report,"Jaitley said.
"Members of the commission headed by Justice A.K Mathur has today submitted the 7th pay commission recommendations to me. I am extremely grateful to justice Mathur and his team who have put in a lot of effort over the last 24 months," he added.
Justice Mathur said minimum pay in Government is recommended to be set at Rs 18000 per month.
"In percentage terms the overall increase in pay & allowances and pension will be 23.55 %.Within this the increase in pay will be 16% , increase in allowances will be 63% and increase in pension would be 24%. The minimum pay in govt is recommended to be set at Rs 18000 per month. Max pay is recommended as Rs 2,25,000 per month for Apex scale and Rs 250000 per month for Cabinet Secretary and others at the same level," Jutice A.K, Mathur told the media here.
The Pay Commission report is to be implemented from January 1, 2016.
