7th Pay Commission likely to propose 15% salary hike on November 19

Shares According to reports, this recommendation is likely to impact 50 lakh central government employees and 54 lakh pensioners.  Central government is likely to announce a 15% hike in salaries starting from January 1, 2016, according to media reports. The Seventh pay Commission is expected to submit the final report on November 20 to the Finance Ministry. "We are ready with the report and will submit it on November 19," the Commission's Chairman Justice A K Mathur told PTI. According to reports, this recommendation is likely to impact 48 lakh central government employees and 54 lakh pensioners. Analysts say that sales of homes and consumer durables such as cars, two-wheelers and electronic items are likely to pick up, according to NDTV reports.  According to Bank of America Merrill Lynch (BofA-ML) estimates, a 15% hike in salary will push up the central government's salary bill by Rs 25,000 crore which is 0.2% of India's GDP. As per Zee News reports, the 900-page report is believed to have made suggestions on parity of 36 organised Group A services with the IAS which has so far largely dominated in superior positions in the central government. Government constitutes the pay commission almost every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications. As part of the exercise, the commission holds discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services. Besides Chairman, other members of the commission are Vivek Rae, a retired IAS officer of 1978 batch, and Rathin Roy, an economist. Meena Agarwal is secretary of the commission. The 6th Pay Commission was implemented with effect from January 1, 2006; the 5th from 1 January 1996, and the 4th from January 1, 1986. (With PTI inputs)