Seventh Pay Commission headed by Justice AK Mathur submits its report to Finance Minister Arun Jaitley on Thursday. It recommends for 23.55 per cent wage hike for the central government employees. Around 48 employees and 55 lakhs retired employees will benefit with this hike to be implemented from 1st January, 2016.

The 7th Pay Commission also recommends one rank one pension for army employees and civilians as well. It recommends that the minimum salary for government employees should be not less than Rs. 18, 000 and maximum Rs.2.5 lakhs per month.

It recommends hike in house rent allowance (HRA) for 1, 2 and 3rd class employees up to 24, 16 and 8 per cent respectively. Incase if their dearness allowance (DA) crosses 50 per cent, then their HRA also should be increased to 27, 18 and 9 per cents respectively. If their DA crosses 100 per cent then their HRA also should be increased to 30, 20 and 10 per cents respectively. However, the 7th Pay Commission did not recommend for any change in the present annual increment of 3 per cent to the employees.

These recommendations will put additional burden of Rs. 1.02 lakh crores on the central government. Out of this Rs. 73, 650 crores to be allocated in the central budget and Rs. 28, 450crores in the Railway budget every year for implementing these recommendations of 7th Pay Commission.