The central government is going to start payment of salaries and pensions to its 48 lakh employees and 52 lakh pensioners according to the 7th Pay Commission recommendations from July along with six months’ arrears.
The payments will be made following the pay-fixation method in the new pay matrix which has been suggested in place of pay band and grade pay by the Seventh Pay Commission.
The government’s overall arrears payout will be lower because of only six months arrears this time, compared to the previous pay commission, which came in late.
The government has been provisioned Rs 70,000 crore in the Union Budget 2016-17 to meet the demand for the new pay commission award that will be made effective from January 2016.
Basic salary of central government employee will almost be 30 percent hiked under the new pay commission award with employees in the lower rung are likely to get the highest percentage of raise.
“We’re at the final stage for issuing the notification and 3-4 more months will be required to implement, so we hopefully say that they will get new pay and arrears in the July,” a source close to the developments told The Sen Times.
The report of the Seventh Pay Commission was presented to Finance Minister Arun Jaitley in November with a recommendation for raising minimum pay to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.
The panel recommended a 14.27 per cent increase in basic pay. The overall increase in salary, allowances and pensions is 23.55%. The increase in allowances will be higher by 63% while pensions will rise 24%.
The government set up a 13-member Empowered Committee of Secretaries (CoS) headed by Cabinet Secretary P K Sinha for processing the report of the Seventh Pay Commission before cabinet nod.
An Implementation Cell has been created in the Finance Ministry which works as the Secretariat of the Empowered Committee. All central government employees unions’ submitted their written demands in respect of seventh pay commission’s anomalies in the cell to review, which are under process.