Around 30% pay hike, 5-6% annual increment likely to be in 7th CPC report.

Five to six per cent annual pay hike of Around 30% pay hike, 5-6% annual
increment likely to be in 7th CPC
report. Central
Government employees is likely to be linked to
tangible performance criterion. Under-
performers are likely to be retired by
55 or 30 years of service, according to the
Seventh Pay Commission report to be submitted
soon.
The overall hike being recommended by former
Justice A K Mathur-headed 7th Pay Commission is
around 30 per cent. The Central Government
employees are scheduled to get salary hikes on
the basis of the recommendations by January 1,
2016. According to sources, the house rent
allowance too would see an increase by 20 per
cent. But the most significant recommendation is
that 5 to 6 per cent of the annual increment
would be performance-based. There is also likely
to be a provision of retiring underperforming
employees by the age of 55 or 30 years of
service, whichever is more. “The Commission has
spoken to all stake-holders and the
recommendations are ready. We are expecting to
submit the report any time soon,” sources said.
Set up by the erstwhile UPA government in
February 2014, the Seventh Pay Commission was
given a four-month extension by the NDA
Government. Its term is till December 31. The
commission may also raise salary-levels of PSU
employees. The Sixth Pay Commission led to a six
percentage point increase in dearness allowance
for Central government employees from 16 to 22
per cent. The commission’s recommendations are
usually accepted by the government with minor
adjustments.