In good news for the Central government employees, the Seventh Pay Commission is likely to recommend a substantial pay hike which could be up to 30% or even more, said sources on Thursday.
There will be 5 to 6% performance-based increment every year and those who are under-performing could retire by 55 years of age or after 30 years of service, added sources. House Rent Allowance could also be hiked by 10% to 30%.
The Seventh Pay Commission’s recommendations will be implemented from January 1, 2016. The Department of Personnel and Training will examine the recommendations and consult the Finance Ministry on them.
Its term was extended by four months till December 31 to give its recommendations on revising emoluments for nearly 48 lakh central government employees and 55 lakh pensioners.