Published On: Wed, Apr 27th, 2016

7th Pay Commission award notification will be issued in June, says Finmin

New Delhi: The notification to put into effect the 7th Pay Commission award will possibly be issued in the third week of June, says top Finance Ministry sources on condition of anonymity.

Finance Minister Arun Jaitley also promised that the government will announce the 7th Pay Commission award soon.

Finance Minister Arun Jaitley also promised that the government will announce the 7th Pay Commission award soon.

“But in case it’s not issued in third week of June, it will be issued at the beginning of fourth week of June. Usually it takes around one week to issue a notification, after cabinet nod,” they added.

Finance Ministry top officials told The Sen Times yesterday, “We hope the Empowered Committee of Secretaries will submit its report by June 15.”

The cabinet is likely to approve the 7th Pay Commission award in third week of June for all central government employees and officials with a highest basic pay of Rs 2,50,000 and a minimum of Rs 20,000.

The basic pay for officers and other employees would take retroactive effect from January 1 this year, while the allowances would be paid from July 1, 2016.

The government employees would get salaries according to the previous scale until the notification for the new pay scale was issued, said the Finance Ministry officials.

“The 7th Pay Commission award will be effective from January 1, so they will receive arrears of basic pay from January,” they added.

Minister of State for Finance Jayant Sinha said in Rajya Sabha yesterday in a written reply that the implementation of 7th Pay Commission award which will take effect from January 1, 2016, is estimated to put an additional burden of Rs 1.02 lakh crore on the government exchequer in financial year 2016-17.

Finance Minister Arun Jaitley said on February 26, when he presented the Economic Survey in parliament, that the recommendations of 7th Pay Commission will not impact market price volatility.

It reveals that the government is ready to implement 7th Pay Commission recommendations soon and central government employees will receive their salaries under 7th Pay Commission Award in July.

The 7th Pay Commission handed over its recommendations to the Finance Minister Arun Jaitley on November 19 in 2015, while a secretary-level Empowered Committee headed by Cabinet Secretary P K Sinha was formed in January to review its proposals.

The Seventh Pay Commission recommended 14.27 per cent increase in basic pay to central government employees which was the lowest increase in 70 years.

The previous commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

The Pay Commission also recommended overall increase in salary, allowances and pensions 23.55 per cent. They proposed to increase in allowances by 63 per cent while pensions will rise 24 percent.

The 7th Pay Commission also proposed the highest basic salary at Rs 250,000 and the lowest at Rs 18,000 and its increased the pay gap between the minimum and maximum from existing 1:12 to 1:13.8, while all pay commissions made up pay gap between employees and officers from second Pay Commission 1:41 ratio to Sixth pay commission 1:12.


Copyright: Any unauthorized use or reproduction of The Sen Times’ above content for any purpose is strictly prohibited and constitutes copyright infringement liable to legal action. Please share this article with others using the link, do not cut and paste the article. See our Copyright Policy for more detail.

About the Author