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Monday, June 20, 2016

Cabinet Unlikely To See 7th Pay Commission Award This Month

 The 7th Pay Commission award’s proposals on the new pay scale are unlikely to be placed before cabinet meeting this month as there were still indecision regarding pay raising for the central government employees and officers:
After taking final decision, the Empowered Committee will submit its updated report to the Finance Minister Arun Jaitely.
After taking final decision, the Empowered Committee will submit its updated report to the Finance Minister Arun Jaitely.
Well-placed sources told The Sen Times that the Empowered Committee of Secretaries headed by the Cabinet Secretary P K Sinha, which is processing the recommendations of the 7th Pay Commission and which ruled on central government employees’ pay hike fate did not get as far as determining whether it appropriate to hike 30 per cent basic pay. They added that the secretaries Committee wanted to see more data from Implementation Cell, so the pay scale for central government employees had not yet been completed.
“There are still complications regarding the new pay scale proposals; the Empowered Committee of Secretaries did not take a final decision of 30 percent basic pay hike during its meeting on June 13. They want to move to two other meetings to make final decision for overcoming the difficulties to fix new pay and allowances, after which it will be sent for cabinet nod,” a Finance Ministry official involved with the process told The Sen Times on condition of anonymity.
Sources at the implementation cell, however, said the already-prepared proposals were now awaiting directives from high-ups to be placed before the cabinet.
Media report said government is about to take a final call this week, as the Empowered Committee of Secretaries headed by the Cabinet Secretary met the PMO officials in this respect.
According to the media, the Empowered Committee of Secretaries have recommended 30 per cent hike in salaries of central government employees and the fitment factor is likely to be raised to around 2.7, up from 2.57 as recommended by the 7th Pay Commission.
As it stands, the 7th Pay Commission had recommended a minimum monthly basic salary of Rs 18,000 and maximum of Rs 2,50,000. A 30% hike would take the minimum basic monthly pay to Rs 23,500 and the maximum to Rs 3,25,000.
The media report said, that the starting salary of the central government employees is expected to be around Rs 24,000, up from Rs 18,000,
But a Finance Ministry official said the cabinet is not likely to take up the proposal of 7th Pay Commission award this month to hike the pay and allowances for the central government employees. Finance Ministry official made it clear that the final decision of 7th Pay Commission award will be taken by the Empowered Committee after its another two meetings with inputs of the Implementation Cell.
After taking final decision, the Empowered Committee will submit its updated report to the Finance Minister Arun Jaitely.
The Cabinet meetings later this month is understood to approve the proposal of Empowered Committee of Secretaries which is to be placed by Jaitley.
The 7th Pay Commission, headed by Justice A K Mathur, had originally proposed hike of 14.27 in basic pay, 23.55% in salary, allowances and pensions. The hike in allowances was recommended 63% while pension was proposed to rise 24% for about 48 lakh central government employees and 52 lakh pensioners with retrospective effect from January this year.
The government formed a 13- member secretary-level Empowered Committee in January to review the pay panel’s recommendations and an Implementation Cell has also been created in the Finance Ministry which works as the Secretariat of the Empowered Committee of Secretaries.

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