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Here's a good news for govt employees: Cabinet may approve 7th Pay Commission's report tomorrow
The Union Cabinet meeting is scheduled for tomorrow and it is expected that it may approve the report of a high-powered panel that was formed to process the recommendations of the 7th Pay Commission. The central government has constituted the Cabinet Secretary PK Sinha-led panel in January this year.

Once the report by the panel is cleared, 50 lakh central government employees and around 58 lakh pensioners will witness increase in their salaries and monthly pension.

The Pay Commission has recommended an increase of 14.27 per cent hike in basic pay. However, according to various media reports, the high-powered panel has recommended an increase of 18 to 20 per cent in the basic pay.

Once the 7th Pay Commission report is implemented the minimum salary of a entry level central government employee will be Rs 18,000 per month. Right now it is Rs 7000 per month. The Cabinet Secretary's salary will increase to the maximum level of Rs 2.5 lakh from the present Rs 90,000.

The Pay Commission has recommended HRA payment at the rate of 24 per cent, 16 per cent and 8 per cent of the new Basic Pay for Class X, Y and Z cities respectively. It has also been recommended that when DA crosses 50 per cent the rate of HRA will be revised to 27 per cent, 18 percent and 9 percent respectively. It will be again revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent.

The 7th Pay Commission's recommendations will be effective from January 1, 2016. The employees will get arrears for the last six months. The government will decide if the arrears are to be paid in one go or in installments.

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