7th pay commission: When top level get 23% hike and D-level get just 15% salary rise

The Union Cabinet, on Wednesday, approved 7th Pay Commission recommendations. The salaries of central government employees are set to increase by 23.55% effective from January 1, 2016. 

At the same time, D-level which is considered as the lowest level on  employee pay scale will get hike of 15% on their gross salary, said a media report.

As per a Zee Business report, new pay structure has been formed to bring in more transparency. "Grade Pay has been subsumed in the pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix", said the report.

Further, as per the 7th pay commission report, a fitment rate at 2.5% is proposed, which will be applied uniformly for all employees, the report added.

Lastly, the report mentioned that the non-pay and non-pension related recommendations have been sent to departments and respective ministries for study.

As per the announced 7th Pay Commission data, it has recommended 23.55% overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7% of the gross domestic product (GDP).

The government will pay revised salaries to central government employees from July 1 this year.  The employees will get salary arrears from January 1, 2016,  but allowances will be paid only from July 1.