The Report of 7th Central Pay Commission is Submitted, Recommend 23.55% salary hike (Download PDF)


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Justice AK Mathur headed 7th Central Pay Commission (CPC) and he recommended 23.55 percent hike in pay and allowances of government employees. The commission has submitted their report to Union Finance Ministry regarding it in New Delhi and the recommended pay revision will come into effect from 1 January 2016

According to 7th CPC

  • Minimum basic pay will be of 18 thousand and maximum of 2.5 lakh rupees per month.
  • In 7th CPC it cancels grade pay and pay band structure. And the rate of annual increment will be three percent for employees.
  • The pay will increase by 16 percent, allowances by 63 percent and pension by 24 percent.
  • It has cancels 52 allowances and introduces a Health Insurance Scheme. One Rank One Pension (OROP) scheme for central government employees, and also for para military as well as armed forces personnel.
  • Increase in military service pay and revised pension formula for civil employees including Central Armed Police Forces (CAPF) and Defense Personnel retiring before 1 January 2016.


  • According to The pay revision it will impact 47 lakh serving employee and 52 lakh pensioners of the Central Government including in the Defiance and Railways.
  • The cost public fund will be over 1 lakh crore rupees annually.
  • The implementation of Pay Commission will impact financial shortfall by 0.65%. Finance Ministry has setting up committee headed by Expenditure Secretary to go through the report for its implementation.

About 7th pay commission

  • In February 2014 the 7th Central Pay Commission was setup revise compensation for employees and pensioners of central government including Defence and Railways.
  • It also recommended bearing on the salaries of the state government staff.
  • The CPC is established by the Union Government after almost every 10 years in order to revise the pay scales of employees.
  • The 6th CPC was approved in July 2006 under the Chairmanship of B. N. Srikrishna.

- Published/Last Modified on: November 23, 2015

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