The much awaited
seventh pay commission is going to enter the last phase of implementation
soon.
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The Union Cabinet
is expected to take up the recommendations of the 7th Pay Commission on June
29.
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As per reports,
Prime Minister has directed Finance Ministry to implement the Pay Commission
for government employees, and place the Empowered Group of Secretaries report
on the central government employees' salary and allowances hike in the next
Cabinet meeting on Wednesday, June 29.
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It is expected
that Empowered Group of Secretaries panel has raised the fitment factor to
around 2.7, up from 2.57 as recommended by the 7th Pay Commission. The entry
level salary is expected to rise to Rs 23,000, up from Rs 18,000 as
recommended by the AK Mathur panel. Implementation of the Pay Commission
report is going to cost the government Rs 1.02 lakh crore.
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The Commission
will revise the pay of nearly 47 lakh central government employees and 52
lakh pensioners, which will be effective from January 1, 2016.
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With the threat
of strike by central government employees looming large, the Cabinet is
expected to take a prompt decision on the recommendations resulting in
notification.
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The salary hikes
recommended are expected to apply from July.
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The government is
likely to soon announce the implementation of Seventh Pay Commission that
would hike the salaries and allowances for over 1 crore government employees
and pensioners by at least 23.5 per cent.
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A Committee of
Secretaries headed by Cabinet Secretary P.K. Sinha has submitted its report
on the recommendations of the Seventh Pay Commission which may be accepted, a
financial ministry official said.
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Based on the
panel’s report, the Finance Ministry is preparing a Cabinet note and the
issue may come up for approval by the Cabinet as early as June 29.
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“Committee of
Secretaries (CoS) has finalised its report on Pay Commission
recommendations... We will soon (file) draft Cabinet note based on the
report,” Finance Secretary Ashok Lavasa said here on Monday.
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The government
had in January set up a high-powered panel headed by Cabinet Secretary to
process the recommendations of the 7th Pay Commission which will have bearing
on the remuneration of nearly 50 lakh central government employees and 58
lakh pensioners.
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The Pay
Commission had recommended 23.55 per cent overall hike in salaries,
allowances and pension involving an additional burden of Rs 1.02 lakh crore
or nearly 0.7 per cent of the GDP.
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The panel
recommended a 14.27 per cent increase in basic pay, the lowest in 70 years.
The previous 6th Pay Commission had recommended a 20 per cent hike which the
government doubled while implementing it in 2008.
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The 23.55 per
cent increase includes hike in allowances.
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The entry level
pay has been recommended to be raised to Rs 18,000 per month from current Rs
7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed
at Rs 2.5 lakh per month from current Rs 90,000.
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Sources said the
secretaries’ panel may have recommended higher pay increase, with minimum
entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.
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While the Budget
for 2016-17 fiscal did not provide an explicit provision for implementation
of the 7th Pay Commission, the government had said the once-in-a-decade pay
hike for government employees has been built in as interim allocation for
different ministries.
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Around Rs 70,000
crore has been provisioned for it, officials said.
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