Published On: Thu, Nov 26th, 2015

State govts gear up for seventh pay commission implementations

New Delhi: The state governments are gearing up for implementations of the seventh pay commission report, while the central government has in-principle accepted the proposal of the seventh pay commission, it has come as a boost for the states government employees .

Uttar Pradesh Chief Minister Akhilesh Yadav

In a sop to Uttar Pradesh state government employees ahead of the Assembly elections 2017, the Samajwadi government led Akhilesh Yadav may announce to constitute the state Pay Commission to hike salary and pension for state government employees and pensioners.

The state governments have also started preparing for its implementation.

Senior officials in the most of states finance department believe that the acceptance of the seventh pay commission recommendations of more than 23% hike in the salary of state governments employees will not only pinch the tax payers of the states but will also upset the states already stressed finances.

A senior official of the Uttar Pradesh government said the government will make special provision for increasing salary of state government employees in accordance with the recommendations of the Seventh Central Pay Commission in the budget estimates 2017-18 .

“The fund of Seventh Central Pay Commission will be provided from the Union Budget of the next financial year, 2016-17 for salary hike of central government employees and pensioners.

So, the recommendations of the Seventh Pay Commission for central government employees will be implement in next year after fund allocation in Union budget 2016-17.

After implementation its in central level, the seventh pay commission recommendations would also impact all states government employees like us after some modifications. It will also take about one year, hence the fund in this respect will be allocated from the state budget of financial year 2017-18,” he said

“In a sop to Uttar Pradesh state government employees ahead of the Assembly elections 2017, the Samajwadi government led Akhilesh Yadav may announce to constitute the state Pay Commission to hike salary and pension for state government employees and pensioners, which will be implemented from January 1, 2016,” he added.

The 900-page report of the 7th central 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.

A cell has been set up on November 20 for a period of one year, in expenditure department under Union Finance Ministry headed by a Joint Secretary level officer to study the pay commission report for implementation the report of the Seventh Pay Commission.

TST

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