Central govt employees' pay may be hiked by 30%: Sources

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 percent or even more, said sources on Thursday.

There will be 5 to 6 percent 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 percent to 30 percent.

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.

The Commission, whose recommendations may also have a bearing on the salaries of the state government staff, was given more time by the Union Cabinet just a day before its original 18-month term was to end.

Headed by Justice AK Mathur, the Commission was appointed by the previous UPA government in February 2014.

The 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.

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 Sixth Pay Commission was implemented with effect from January 1, 2006, the fifth from January 1, 1996 and the fourth from January 1, 1986.