Published On: Mon, Jun 13th, 2016

7th Pay Commission review panel revises pay hike to implement from August 1

New Delhi: The secretary-level Empowered Committee screening the 7th Pay Commission’s recommendations on Saturday revised the pay structures of central government employees to implement from August 1.

Finance Minister Arun Jaitley said, government had requisite fund to implement 7th Pay Commission award.

Finance Minister Arun Jaitley said, government had requisite fund to implement 7th Pay Commission award.

The Empowered Committee of Secretaries recommended a 30 per cent increase in the central government employees’ basic pay and minimum basic pay to Rs 21,000 per month and the maximum basic pay Rs 2,70,000. They also recommended for doubling of existing rates of allowances and advances, Finance Ministry officials told The Sen Times on condition of anonymity.

The officials later told us the 7th Pay Commission had suggested a maximum basic pay of Rs 2,50,000 and a minimum of Rs 18,000.

Cabinet Secretary P K Sinha who is heading the panel to hand over a report on the revised pay structure to Finance Minister Arun Jaitley and there will be no public disclosure before handing over the Finance Minister, they added.

After Finance Minister’s observation on review of 7th Pay Commission’s recommendations, the proposal will be placed before the Cabinet in July for it’s nod, they confirmed.

“We don’t think Finance Minister will be able to see it within one month, considering his preoccupation with the other activities. However, the new pay structure will be implemented from August 1,” they added.

The Finance Ministry officials agreed with the secretary-level panel. “we think it should not be touched again in the Finance Ministry,” they said.

The officials said it was ‘natural’ for the secretary-level committee to recommend higher basic pay proposed than 7th Pay Commission. “It also happened before.”

The previous Sixth Pay Commission had recommended a 20 per cent hike in basic pay which the government doubled while implementing it in 2008, they added.

The 7th Pay Commission recommended 14.27 per cent increase in basic pay, 23.55% overall increase in salary, allowances and pensions. The increase in allowances was recommended 63% while pension was proposed to rise 24%.

The government formed a 13 member secretary-level Empowered Committee headed by Sinha in January to review the report of the Justice A K Mathur-led 7th Pay Commission.

Mathur-led committee submitted the report on November 19 after around 22 months passed.

After getting the report, the Finance Minister said there would be Rs 1,02,000 crore rise in government’s salary expenditure to implement the new structure.

However, he said, government had requisite fund to implement it.

The new pay scales will be effective from January 1 for all central government employees.


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