Pay Commission Award In This Budget

New Delhi: The government will announce the Seventh Pay Commission award in the this budget to facilitate central government employees salaries with regard to inflation, Finance Ministry official said Friday.

Addressing the Consultative Committee attached to the Finance Ministry, Finance Minister Arun Jaitley said Friday, “During the financial year 2016-17, the central government has to make provision for about Rs 1.10 lakh crore in order to meet the liabilities on account of implementation of Seventh Pay Commission recommendations and One Rank One Pension (OROP) Scheme,”

He made clear that there would be no doubt for implementation of Seventh Pay Commission award and One Rank One Pension (OROP) soon after Budget.

The Finance Ministry officials said the central government knows that the employees are not happy with the pay commission recommendations.

Since adjusting salary, allowance and other financial benefits to market price is a complex issue, hence the government has set up an Empowered Committee of Secretaries, headed by Cabinet Secretary P K Sinha, to process the pay panel’s recommendations on pay hikes for central government employees, the officials said.

An Implementation Cell has been created in the Finance Ministry which works as the Secretariat of the Empowered Committee.

The first meeting of Nodal officers of different ministries was held on February 2 in the Secretariat of the Empowered Committee for discussing the relevant issues in connection with the processing of the recommendations of Pay Commission.

According to the minutes of the of first meeting, the employees’ associations through ministries can raise afresh the demand for pay hike which were rejected by the Seventh Pay Commission but it will be done in short time as the government intend to implement pay commission award after the budget.

The 900-page report of the Seventh Pay Commission headed by Justice A K Mathur was presented to Finance Minister Arun Jaitley on November 19 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. For the Secretaries it has been fixed at Rs 2.25 lakh as against Rs 80,000 currently.

The pay commission award is from Januray 1. 2016 but it is likley to be implemented from mid-this year and employees paid arrears.

The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. 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%. News:-


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