Several debates, protests have since occurred with employees and pensioners, particularly from autonomous organisations, demanding their pay be revised at the earliest.
We bring you a seven-point guide on what are the recommendations and their financial implications on the exchequer.
Here is all you need to know about the Seventh Pay Commission:
The Seventh Pay Commission in November 2015 recommended a 14.27 per cent hike in basic pay at junior level. This is the lowest in 70 years--employees got a 40 per cent hike in 2008 when the government doubled the 20 per cent hike recommended by the pay commission.
As per a government notification in July last year, now the minimum revised pay drawn by a Central government employee stands at Rs 18,000 as against Rs 7,000 per month. At the highest level, a cabinet secretary can draw up to Rs 2.5 lakh per month in contrast to Rs 90,000 before seventh pay commission recommendation.
"With regard to fixation of pay of the employee in the new Pay Matrix as on first day of January, 2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31st day of December, 2015 shall be multiplied by a factor of 2.57," the July notification said.
The notification said there will be two dates for grant of increment--January 1 and July 1 every year instead of the existing July 1 only. Employees will be entitled to only one annual increment on either of these two dates depending on the date of appointment, promotion or grant of financial upgradation.
The Pay Commission however recommended doing away with 53 of the 196 allowances the government employees get besides moderation in several others.
The recommendations cover 47 lakh central government employees and 53 lakh pensioners. This includes 14 lakh serving employees and 18 lakh pensioners in defence forces.
As per government estimates, the financial impact of implementing the pay commission recommendations in the 2016-17 fiscal is likely to be Rs 1.02 lakh crore