In what can be said as a Diwali gift for the government employees, the Tamil Nadu government on Wednesday approved the 7th pay commission recommendations. The decision was taken after Tamil Nadu Finance Minister K Shanmugam held a high-level meeting with other senior officials and submitted its report to TN Chief Minister Edappadi K Palaniswami. According to reports, once the 7th pay commission is implemented, it is expected that the government employees will get a 20% hike in their salaries. Over a lakh government officials and teachers will be benefited by the 7th pay commission.

The central government earlier in June this year had approved the recommendations of the 7th pay commission (CPC) related to allowances, with 34 modifications. Overall, an expected 34 lakh civilian government employees and around 14 lakh defence personnel will be benefited after their salaries will be revised.

The recommendation were approved after Prime Minister Narendra Modi held a cabinet meeting and gave his nod for the decision. However, once the revised pay commission is implemented, it will create an extra burden of Rs 30,748.23 crore annual to the government. Seventh Pay Commission recommendations suggested the lowest hike for Central government employees in past 70 years. The recommended hike was 14.27% on the basic pay.

In the cabinet meet, it also took up the proposal to hike in HRA and other allowances with respect to Seventh Pay Commission. Finance Minister Arun Jaitley, who attended the meet, had said, “House Rent Allowance will be paid at 24 per cent, 16 per cent and eight per cent for X,Y, Z cities. The CPC recommended revision of HRA when DA reaches 50 per cent and 100 per cent. The government decided to revise rates when DA crosses 25 per cent and 50 per cent respectively.”