7th Pay Commission – Cabinet Ready to Accept Secretaries Group Recommendations – The finance minister on the personnel side, will take care of higher take away better than the 7th Pay commission recommendations.
A 13 members secretary-level Empowered Committee or Secretaries group, led by cabinet Secretary P K Sinha was formed in January to review the recommendations of 7th Pay Commission before cabinet nod and the Secretaries group is likely to submit its report before June 30.
The 7th Pay Commission headed by Justice A K Mathur proposed the highest salary at Rs 250,000 and the lowest at Rs 18,000. The commission also recommended 14.27 per cent increase in basic pay, 23.55% overall increase in salary, allowances and pensions. The increase in allowances was recommended 63% while pension was proposed to rise 24%.
The move was the lowest increase in 70 years.
A Senior official in Finance Ministry, familiar with the 7th pay commission matter said in anonymous, 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 finance minister on the personnel side, will take care of higher take away better than the 7th Pay commission recommendations,” the reliable sources added.
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 expected to be tied to the anticipated rise in private sector wages in the upcoming months.
The previous 6th Pay Commission had recommended a 20 per cent hike, which the then 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% pay increase in their income and the ministry will take the proper step in ensuring that they do receive it,” reliable sources added.
Finance Minister Arun Jaitley has also been provisioned Rs 70,000 crore in the Union Budget 2016-17 to meet the demand for the 7th Pay commission award that is expected to be effective from January 2016.
The central government employees are expected to get their pay hike from July after cabinet nods to the recommendations.