The Union Cabinet is expected to give the Seventh Pay Commission a two-month extension at its meeting on Wednesday. The actual term of the Commission ends this month.
The report which is being awaited by about 4.8 million central government employees and 5.5 million pensioners is being prepared under the chairmanship of Justice A K Mathur and is likely to be submitted by next month.
The Commission was set up by the UPA government in February 2014 to revise remuneration of central government employees, defence personnel and pensioners.
Every 10 years, the government constitutes a pay commission to revise the payscale of its employees and often these are adopted by states after specific modifications.
The recommendations of the Seventh Pay Commission are scheduled to come into effect from January 1, 2016.
According to a statement tabled in Parliament by finance minister Arun Jaitley, the government’s salary bill will rise by 9.56% to Rs 1,00,619 crore with the implementation of the commission’s recommendations.