A Layman’s Guide to Pay Commission

What will be the lowest and highest basic salary under 7th Pay Commission?

When is it likely to be implemented?

What are the other salient features of the 7th Pay Commission?

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As much as Rs 70,000 crore has been provisioned in the Union Budget 2016-17 for implementation of Seventh Pay Commission for government employees, a top finance ministry official said.

While the Budget did not provide an explicit overall provision number, the government had said the Seventh Pay Commission hike has been built in as interim allocation for different ministries and Budget numbers were credible.

Implementation of the pay commission report in toto is to cost the government Rs 1.02 lakh crore.

“We have provisioned for around 60-70 per cent of the total burden that was talked about,” the official said adding about Rs 70,000 crore has been provided in the Budget.

“We will wait to see the report of the Committee of Secretaries on the Seventh Pay Commission and decide if we need further allocation,” he said.

The Budget document states that “the implementation of the Seventh Pay Commission due from January 1, 2016 is to be implemented during 2016-17 fiscal as also the revised One Rank One Pension (OROP)scheme for Defence services.”

The finance ministry has provisioned for this in the Demands for Grants for individual departments and ministries. It is built into and subsumed into those allocations.

“No one actually knows what will be the actual burden on the exchequer for the implementation of Pay commission recommendation. We have calculated internally and allocated to various ministries and departments accordingly,” the official said.

The government in January set up a high-powered panel headed by Cabinet Secretary P K Sinha to process the recommendations of the seventh Pay Commission which will have bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.

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 official further said the finance ministry has fully provided for OROP scheme for defence personnel.

Faced with the burden of Pay Commission recommendations, there were concerns on whether the government would be able to stick to the fiscal deficit target of 3.9 per cent for 2016-17.

However, in Budget Finance Minister Arun Jaitley dispelled doubts and promised to adhere to the fiscal consolidation roadmap and stick to 3.9 per cent deficit target.

PTI

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7th Pay Commission likely to recommend up to 30% pay hike – There will be 5 to 6% performance-based increment every year and those who are under-performing could retire by 55 years of age or after 30 years of service, added sources. House Rent Allowance could also be hiked by 10% to 30%.

The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications. As part of the exercise, the Commission holds discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services.

The 7th Pay Commission is ready with its report and is expected to hand over the recommendations to the Central Government any time now. The Department of Personnel and Training will examine the recommendations and consult the Finance Ministry on them. After which the recommendations will be implemented from January 1, 2016.

We have information from reliable sources, which if true, will make the Central Government employees happy. The Seventh Pay Commission is likely to recommend a substantial pay hike which could be up to 30% or even more, said sources on Thursday.

There will be 5 to 6% performance-based increment every year and those who are under-performing could retire by 55 years of age or after 30 years of service, added sources. House Rent Allowance could also be hiked by 10% to 30%.

The Commission, whose recommendations may also have a bearing on the salaries of the state government staff, was given more time by the Union Cabinet just a day before its original 18-month term was to end. Headed by Justice AK Mathur, the Commission was appointed by the previous UPA government in February 2014.

Source: CNN IBN

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