New Delhi: The central government is likely to announce 7th Pay
Commission award for its 48 lahk employees and 52 lakh pensioners, in a
bid to ease the inflationary pressure, official sources said.
The 7th pay commission recommendations are not helpful for maintaining
central government employees employees’ living standard, Finance
Ministry sources told The Sen Times on Tuesday.
They had also said the salaries of government employees should increase
which would give them some financial comfort, a step they had hoped
might be taken within in June, when government will announce 7th Pay
Commission award with major changes.
Sources in the Prime Minister’s Office (PMO) said Prime Minister
Narendra Modi may make a formal announcement on 7th Pay Commission award
in June.
The government has a plan to constitute a permanent pay commission, but
Finance Ministry officials are in doubt whether it will be succeeded.
They also said the Finance Minister Arun Jaitley is likely to approve
the proposal of review committee, which will propose minimum pay Rs
21,000 and maximum a round Rs 2,50,000 to Rs 2,70,000 to help central
government employees cope with the inflation.
This will cost the exchequer Rs 1.02 lakh crore. However, in the Budget
2016 proposal, the government provided Rs 70,000 crore for the
implementation of Seventh Pay Commission.
“The Finance Minister Arun Jaitley promised that the government will
implement the 7th Pay Commission award in this financial year,” sources
said.
The government has made allocation in the current fiscal’s budget to
meet the 7th Pay Commission award which will require the government to
spend Rs 1.02 lakh crore in addition to existing regular salary.
The 7th Pay Commission headed by Justice A K Mathur recommended on
November 19, the highest basic salary at Rs 250,000 and the lowest at Rs
18,000 and its increased the pay gap between the minimum and maximum
from existing 1:12 to 1:13.8, while all pay commissions made up pay gap
between employees and officers from second Pay Commission 1:41 ratio to
Sixth pay commission 1:12.
A 13 member a secretary-level Empowered Committee or review committee
headed by Cabinet Secretary P K Sinha was formed in January to review
Pay Commission’s report before cabinet nod.