New Delhi: Influential quarters of the government are lobbying for 7th Pay Commission award to central government employees at crucial period for central government like centre defeat in the Uttarakhand assembly floor test on Tuesday, the Prime Minister Office (PMO) has advised to the Finance Ministry to offer 7th Pay Commission package soon despite other crises.
The PMO has recommended to offer 7th Pay Commission award in July to augment the financial assistance to central government employees, sources in Finance Ministry familiar with the matter said on Friday asking not be named.
“We have seen the recommendations of the PMO. Accordingly the Secretaries group works hard for the the execution of new pay package would definitely in July,” said sources.
They said execution of the new pay package involves Rs 120 crore and before that the government has to spend Rs 70 crore on salaries and arrears in this year for the central government employees.
Finance Minister Arun Jaitley provided fund for pay commission implementation in his Budget 2016-17. “Jaitley while introducing the Seventh Pay Commission report on November 19 already said that the final decisions on the Seventh Pay Commission report took five and a half months including the process of Secretaries group,” source said.
“PMO, narrating the “importance” of the implementation of 7th Pay Commission recommendations, said it was necessary to provide different incentives, including a higher pay package, to the central government employees to build a “pro-people” administration.
The PMO asked to adopt the method in which salaries of central government employees in all segments automatically go up with the pace of inflation or consumer price indices.
PMO asked a 30% rise in the basic pay of a central government employee and that the lowest salary be increased to Rs 21,000,” source added.
The 7th Pay Commission recommended 23.55 per cent gross increase in salary, allowances and pensions, 63 per cent per cent increase in allowances, 24 per cent per cent increase in pension, while 14.27 per cent increase in basic pay, the lowest in 70 years.
The previous Sixth Pay Commission had recommended a 20 per cent hike in basic pay which the government doubled while implementing it in 2008.
A 13 member secretary-level Empowered Committee or Secretaries group, led by cabinet Secretary P K Sinha, formed in January to review the recommendations of 7th Pay Commission before cabinet nod.
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