Published On: Thu, Nov 26th, 2015

Cell set up for implementation of Pay commission recommendations

New Delhi: The Finance Ministry has set up a cell to implement the recommendations of the Seventh Pay Commission which are eventually accepted by the government.

Ratan Watal

Expenditure Secretary Ratan Watal

The Cell has been set up in the Expenditure Department headed by a Joint Secretary for a period of one year with effect from November 20, 2015.

The Cell would process and implement the “accepted recommendations of the Seventh Pay Commission”, said an office memorandum.

Besides Joint Secretary, the Cell would have nine officials and staff, including a Director level officer and two under-secretary level officers.

The recommendations of the Seventh Pay Commission that will benefit 47 lakh central government employees and 52 lakh pensioners, which will impact the Central Budget by Rs 73,650 crore and the Railway Budget by Rs 28,450 crore.

The 900-page report of the 7th Pay Commission headed by Justice A K Mathur was presented to Finance Minister Arun Jaitley on November 19 with a recommendation that the new scales be implemented from January 1 next year.

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 minimum 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. For the Secretaries it has been fixed at Rs 2.25 lakh as against Rs 80,000 currently.

In a significant recommendation, the report favoured introduction of a health insurance insurance scheme for staff and pensioners and doubling the gratuity ceiling to Rs 20 lakh.

The Centre has expressed confidence that the implementation of the recommendation will not lead to a breach in the fiscal deficit targets.

Minister of State for Finance Jayant Sinha had said: “We are confident that we will be able to stick to fiscal consolidation roadmap even with what the Pay Commission recommended. The roadmap that we have put together is taking into account what the impact of the Pay Commission would be”.

TST

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