7th Pay Commission – Cabinet Approves 23.6% Overall Pay Hike

7th Pay Commission – Cabinet Approves 23.6% Overall Pay Hike

The Cabinet on Wednesday approved a 23.6 per cent increase in government employees’ overall pay – basic pay plus allowances – as recommended by the 7th Pay Commission.

There were reports yesterday that the increase would be higher than what the Commission recommended, but that didn’t happen.

The Pay Commission’s recommendations are to be implemented retroactively, from January 1, 2016. The increase in the basic pay is 14.27 per cent and with the hike proposed in allowances, the rise in remunerations comes to 23.6 per cent. The pay hike will benefit 47 lakh central government employees and 52 lakh pensioners .

It’s estimated that the implementation of the new pay scales will put an additional burden of Rs 1.02 lakh crore annually on the exchequer. That comes to nearly 0.7 per cent of the GDP.

While the 2016-17 budget fiscal didn’t provide an explicit provision for implementation of the 7th Pay Commission, the government had then said that the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries. That interim allocation amounts to Rs 70,000 crore

Source : TimesofIndia

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The Cabinet is likely to take up Seventh Pay Commission Recommendations for Government Employees on June 29.

Cabinet May Decide On 7th Pay Commission On Wednesday

The Cabinet is likely to take up Seventh Pay Commission Recommendations for Government Employees on June 29.

Implementation of new pay scales recommended by the 7th Pay Commission is estimated to put an additional burden of Rs 1.02 lakh crore on the exchequer annually.

Finance Minister Arun Jaitley had in his Budget for 2016-17 provisioned Rs 70,000 crore towards Seventh Pay Commission awards, which is around 60 per cent of the incremental expenditure on salaries.

The Pay Commission’s recommendations are due from January 1, 2016.

The central government constitutes the pay commission every 10 years to revise the pay scales of its employees. The Commission was set up by the UPA government in February 2014 to revise remuneration of about 48 lakh central government employees and 55 lakh pensioners.

Source : profit.ndtv

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7th Pay Commission Implementation: Govt says Amount Allocated to Manage Impact

7th Pay Commission Implementation: Govt says Amount Allocated to Manage Impact

Speculations are rife as Centre to take decision on 7th Pay Commision report implementation as around 47 lakh Central Government employees working in various sectors await their salary hike, which will have implications for government finances and inflation.

At a time when there are no conclusive increase in the private sector spending yet and the government also losing the benefits of low oil prices, it is facing a tough challenge in keeping up with the spending in public sector.

Reacting to a query, Finance secretary Ashok Lavasa said that a certain amount has been allocated to manage the impact of the pay commission award. But to speculate whether the amount is adequate enough, would be too early and premature.

Sources say, for this fiscal year the provision for hounouring the pay panel’s award is about Rs 54,000 crore whereas the outgo is estimated to be Rs 74,000 crore. Lavasa refused to comment on that saying no one knows as to what extent the government will accept the 7th Pay Commisions report.

Source : Financial Express

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