New Delhi, Oct 6: Centre is likely to implement the recommendations of 7th Pay Commission from January 1, 2016. Around 54 lakh central government employees and more than 55 lakh pensioners will be positively affected. The report is to be tabled by the Commission in December.

The Pay Commission is expected to recommend a 100 percent pay hike for the central government employees. Since it is adhering to the guidelines set forth by the fourteenth Finance Commission, it will analyze the current market inflation, consumer price index along with productivity of the workforce before tabling its recommendations. (ALSO READ: 7th Pay Commission: Cabinet approves 4 month extension; report to affect 54 lakh Central Government employees)

However, the Finance Ministry has instructed the Pay Commission to keep the pressure on the exchequer in mind before tabling the final report. “We hope that the Commission will also analyze the burden which will be exerted on the Centre,” Finance secretary Ratan Watal. From the next fiscal year, Centre already has to bear the burden of One Rank One Pension scheme, which will drastically hike the pensions of retired servicemen.

The 7th Pay Commission constituted under the previous government was expected to submit its final report in August. However, unable to assess all parameters, they sought an additional time frame of four months.

The pay scale of the central government employees will be increased starting from April 1, 2016. The government has indicated that the pay hike will adversely affect economy to some extent. Finance Minister Arun Jaitley said in the Parliament during the budget session that “The 7th Pay Commission impact may have to be absorbed in 2016-17.”