New Delhi: 7th Pay Commission salary for all central government employees under the new pay matrix will be implemented from August 1, 2016, a top Finance Ministry’s official today told the Sen Times.
“The new pay matrix will be implemented as per a decision of the cabinet in light of notification and resolution for the implementation of the 7th Pay Commission recommendations have been issued by the Finance Ministry on Monday,” he said in reply to a question from our reporter.
“The Finance Minister Arun Jaitley directed to notify the 7th Pay Commission recommendations immediately,” the official said, adding that the notification to this effect has been issued on Monday and it will be uploaded on the departmental side today.
“Central government employees could get the revised pay under new pay matrix from their August salaries and arrears are to be paid ahead of festive season of Dussehra,” he confirmed us.
Accordingly, the brightest diyas of coming Diwali will be lit outside houses of central government employees.
Central government employees are now busy counting their new salaries under the new pay matrix along with the hard cash they will receive ahead of Dussehra as arrears from January 2016.
The several central government establishments such as the railways, telecom, air force, army, CPWD, CRPF, DRDO, CISF, Income Tax, Survey of India, customs and excise, among others are in happy mood.
These would perhaps live up to the ‘happy and prosperous’ Diwali greeting. After all, they will get arrears as well as bonus ahead of festive season.
However, they will not get new allowances like HRA, Transport Allowance with their new pay structure as the cabinet referred the 7th Pay Commission recommendations relating to allowances to a committee headed by Finance Secretary.
The committee will complete its work in a time bound manner and submit its reports within a period of 4 months, till a final decision, all existing allowances to be paid as per the existing rates in existing pay structure, the cabinet note says.
No arrears for allowances will be paid, as per usual practice, the allowances would be paid from the date of implementation.
No Dearness allowance (DA) will be paid in the new pay matrix (basic pay) as the existing dearness allowance 125 per cent has been merged with the new basic pay.
A fitment factor of 2.57 will be applied across all levels in the pay matrices. After taking into account the DA at prevailing rate 125 per cent, accordingly, the salary of all government employees will be raised by at least 14.28 % as on January 1. However, the rate of annual increment has been retained at 3%.
The central government employees unions are disappointment as the cabinet approved a 14.28 per cent hike in basic pay, which is significantly lower than what the 6th pay commission had recommended. Sixth Pay Commission had recommended a 20 per cent hike in basic pay which the government doubled while implementing it in 2008.
The government assured them to consider their demands through a High Level Committee, which will soon be set up and the government will take steps accordingly.
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