New Delhi: The Implementation Cell in the Finance Ministry which works as the Secretariat of the Empowered Committee of Secretaries for processing the report of the Seventh Pay Commission before cabinet nod, is now working on an effective mechanism for implementation of the 7th Pay Commission award by resolving the issues that arose over minimum pay and pay gap.
A proposal for raising minimum salary of the central government employees to Rs 20,000 from the Seventh pay commission recommendation Rs 18,000 also under study, officials close to the implementation cell told us.
However, central government employees unions demanded minimum pay Rs 26,000. “we think it should not be touched to Rs 26,ooo,” the implementation cell official said.
Once the minimum pay is hiked, salaries of 48 lakh central government employees will automatic automatically increase, depending on their length and post of service than the seventh Pay Commission recommendations and it’s the solution for resolving the pay gap.
But the final decision on the row over minimum pay and pay gap is expected to come from Prime Minister’s Office (PMO).
People, familiar with the development, told the us for that reason the Implementation Cell was yet to send the file to the Empowered Committee of Secretaries.
“The final proposal on the 7th Pay Commission is yet to reach us from the Empowered Committee of Secretaries,” the PMO officials also told us.
On receipt of the proposal from the Empowered Committee of Secretaries it would be placed before the cabinet for its nod through Finance Minister Arun Jaitley, they added.
Under the prevailing circumstances, the central government employees are likely to draw salaries under the 7th Pay Commission for the month of July, as promised earlier by the Finance Minister.
Officials, however, said whenever the 7th Pay Commission would come into effect, the government servants would get their enhanced benefits of salaries with effect from the month of January, 2016.
The 7th Pay Commission award will be implemented in phases. In the first phase, the central government employee will get the basic pay as well as its arrears and in the second phase, they will get allowances but without arrears.
The current budget has an allocation of Rs 70,000 crore for implementation of the 7th Pay Commission award for 48 lakh central government employees and 52 lakh pensioners including dependents.
The complexity over implementation of the 7th Pay Commission award cropped up soon after the recommendation made by Justice A K Mathur’s pay panel.
The 7th Pay Commission recommended the highest basic salary at Rs 250,000 and the lowest at Rs 18,000and 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.
The Central government employees’ associations said, “not at all happy” with the recommendations of the 7th Pay Commission and, in fact, “no section of the Gruop B and C employees is satisfied”, as the Commission has recommended a minimal pay increase as compared to the previous Pay Commissions., they added.
When the Finance Ministry was contacted to know about their latest 7th Pay Commission award, officials said, “We’re ready to send the final proposal to the Empowered Committee of Secretaries.”
But he refused to say when the final proposal would be sent to the Empowered Committee of Secretaries.
However, a number of sources at the Finance Ministry said the PMO would take the decision on minimum pay and pay gap, after recommendation of the Empowered Committee of Secretaries led by the cabinet secretary P K Sinha was formed to review it.
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 was formed in January to review the proposals.
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