The Samajwadi Party in Uttar Pradesh has approved the recommendations of the seventh pay commission, and said it will be implemented from 17 January. According to a report on CNN News18, the entry salary of a person joining at the lowest rung will be around Rs 18,000, while pay for highest office of chief second will be around Rs 2.25 lakh.
The move comes just months before the key political state goes in for Assembly elections, and Yadav was confident of electoral success. "We will win, and if the alliance happens, we will cross 300 plus seats," he said, referring to a possible alliance with the Congress party.
The decision to hike salaries was taken after a committee, headed by retired bureaucrat GB Pattnaik, submitted its interim report to Yadav on 7 December, reported The Pioneer.
It could mean that state government employees will get at least a 20 percent hike in their salaries, which would bring about parity between state and central government employees.
As per statistics, the state government will incur an additional burden of Rs 26,573 crore annually in the first year of implementation while in the second year, the expenditure would come down to Rs 22,778 crore annually. Presently, the state government spends around Rs 95,000 crore annually on salary and perks for state employees, the publication noted.
Yadav, while speaking to CNN-News18, claimed that the pay hike is a people friendly move and will help more than 24 lakh employees.
The Central Cabinet gave its nod to the seventh pay commission recommendations in June 2016, allowing an overall 23.55 percent hike in salaries, allowances and pensions of central government employees. The pay panel, in November last year, had recommended a 14.27 percent hike in basic pay at junior levels — the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 percent hike, which the government doubled while implementing it in 2008.
The seventh pay commission's recommendations will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners. This is estimated to put an additional burden of Rs 1.02 lakh crore, or nearly 0.7 percent of the GDP, on the central government.
The process to introduce the latest pay commission began in January this year, when the central government set up a high-powered panel headed by Cabinet Secretary PK Sinha to process the recommendations.
However, after the government approved the recommendations, there were widespread protests by employees, with many unions threatening to go on strike. Even RSS affiliate Bharatiya Mazdoor Sangh (BMS) and other trade unions rejected the recommendations, contending that it would increase disparity between the minimum and maximum pay. To placate the grievances, the central government promised to set up a high level committee to look into the issues.