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.
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.
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.
“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.
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.
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.
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.
The 23.55 per cent increase includes hike in allowances.
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.
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.
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.
Around Rs 70,000 crore has been provisioned for it, officials said.
Mr. Lavasa said the Seventh Pay Commission report will be effective from January 1.
This news was published in 'The Hindu' on 27.06.2016
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