New Delhi: The government will soon implement Seventh Pay Commission recommendations for 47 lakh central government employees and 52 lakh pensioners, which will impact Rs 1.02 lakh crore on the exchequer in 2016-17.
Finance Minister Arun Jaitley while introducing the Seventh Pay Commission report on November 19 said that the final decisions on the Seventh Pay Commission report took five and a half months.
As the recommendations in process soon, the government has formed on Wednesday a Empowered Committee of Secretaries under the Chairmanship of Cabinet Secretary P K Sinha to recommend how to implement the recommendations of Seventh Pay Commission in an overall perspective.
An official statement yesterday issued disclosing that the Empowered Committee of Secretaries will function as a Screening Committee to process the recommendations with regard to all relevant factors of the Commission in an expeditious detailed and holistic fashion.
The Finance Ministry has already set up a cell on last year November 20, to implement the recommendations of the Seventh Pay Commission headed by Joint Secretary R K Chaturvedi.
In November 19 last year, the Seventh Pay Commission headed by Justice A K Mathur submitted to Finance Minister Arun Jaitley its 900-page report with a recommendation that the new scales be implemented from January 1 this year.
The 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 on recommendation the Empowered Committee of Secretaries headed by then cabinet Secretary.
We understand from sources of the Implementation cell of Finance Ministry that they are likely recommend the average increase in basic pay for all government employees will be in the region of 25-30%. This is a very rough average because for low paid employees, the payback could increase by more than 30%.
We understand that minimum basic salary is likely to hike at least Rs 20,000 from Rs 18,000 recommended by the Seventh pay commission.
The Seventh pay commission recommended fixing 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 panels from second to sixth made up pay gap from 1:41 to 1:12.
Implementation cell is likely to recommend doubling of existing rates of allowances and advances to the Empowered Committee of Secretaries, which was recommended for abolition by Seventh Pay Commission like risk allowance, small family allowance, festival advance, motor cycle advance.
The sources said neither the previous Pay Commissions nor the the previous Cabinet had suggested any curtailment of the facilities in allowances and advances being enjoyed by various cadres of central government employees, and also would not do it now.
The amendments of the Implementation cell of Finance Ministry on Seventh Pay Commission report will go to the Empowered Committee of Secretaries headed by cabinet Secretary P K Sinha for review before cabinet nod. If that happens, it could process by about 1-2 more months from now to next budget.
Finance Minister Arun Jaitley while introducing the Seventh Pay Commission report on November 19 said that the final decisions on the Seventh Pay Commission report took five and a half months including the process of Implementation cell and the Empowered Committee of Secretaries.
It shows that the central government is in the process of soon implementation of the Seventh pay commission recommendations in April, with retrospective effect from 1 January.
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