Wednesday, May 11, 2016


Seventh Pay Commission award for central government employees won’t be a tough sell in the cabinet in next month.

Last November, the Seventh Pay Commission headed by Justice A K Mathur unveiled plans for a 14.27 per cent increase in basic pay, 23.55% overall pay raise for central government employees as part of salary, allowances and pensions. The move was the lowest increase in 70 years.
Senior officials in Finance Ministry familiar with the matter said asking not be named, the Finance Minister Arun Jaitley is sure that his Ministry will be able to find the money to back the cabinet the pay plan of central government employees.

“The Minister wants to be generous to those who have sensitive so much to government policies and 14.27 percent or 23.55 percent is not as generous as they need to be,” sources said.

“The Minister does on the personnel side will take higher away better from the Seventh Pay commission recommendations,” the sources also said.

The Secretaries group is likely to propose 30 percent basic pay raise instead of 14.27 per cent as a way to both boost central government employees’ take-home pay and its efforts to fight inflation that year by year surges to a very high.

The central government employees’ pay raise is supposed to be tied to the anticipated rise in private-sector wages for the upcoming month.

The outside experts have argued that inflation could be affected if the central government employees pay hike, ideally, if salaries increased at the same rate as inflation, there would be no hardships.

Prices of different commodities increase at different rates at different times, affecting different sections of the population not only pay hiking.

The previous Sixth Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

Sources said that the higher pay raise is needed for the central government employees to stay competitive in purchasing power and inflation.

“The central government employees, by practice, are entitled to a 30 percent pay increase and the ministry will take the proper step in ensuring they receive it,” the sources confirmed.

Finance Minister Arun Jaitley has also 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.

A 30 percent pay increase amounts to a Rs 21,000 monthly pay boost for most junior enlisted central government employees and up to Rs 2,70,000 monthly pay for top Indian officer, i.e. cabinet secretary, which is being mulled by the 13 members secretary-level Empowered Committee or Secretaries group, led by cabinet Secretary P K Sinha, formed in January to review the recommendations of Seventh Pay Commission before cabinet nod.

While the Seventh Pay Commission proposed the highest salary at Rs 250,000 and the lowest at Rs 18,000.

The central government employees are expected to get their pay hike from July after cabinet nod

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