7th Pay Commission: Pay rise – likely to be more signalled

Central government employees are entitled for getting a pay rise after 7th Pay Commission recommendations but the group of secretaries is likely to suggest they should be paid more than Pay commission recommendations.

Around 48 lakh central government employees and 52 lakh pensioners, will get a 30 per cent hike in salaries, with minimum pay Rs 20,000 to help employees out of low pay, a thirteen member Empowered Committee of Secretaries (CoS) headed by Cabinet Secretary P K Sinha for processing the report of the Seventh Central Pay Commission is likely to suggest.

Sources in the finance ministry said the minimum pay is to be increased Rs 20,000 from Rs 18,000, which was recommended by Seventh Pay Commission, they also signalled there would be bigger increases in salaries of other employees.

Sources said central government employees would see their pay increase by 30 percent in the first real-terms cash rise in July 2016.

The pay hike from July is expected to neutralise the impact of inflation, which are being faced by the central government employees.

Sources also told us, “Provided the economy continues to improve, group of secretaries expects to recommend progressive real increases in the pay hike, so that 2016 will mark the start of a new phase of central government employees- of bigger increases in pay than the previous Pay Commissions.”

The group of secretaries is also likely to recommend a permanent Pay Commission should be made like a powerful watchdog with the ability to support the ambition of lifting salaries of central government employees, according to soaring inflation.

the Empowered Committee of Secretaries i.e. group of secretaries, which was set up in January to examine the recommendations of the 7th Pay Commission before cabinet nod.

Finance Minister Arun Jaitley received the 7th Pay Commission’s report from Justice A K Mathur in November, who headed the panel, who recommended for raising minimum pay to Rs 18,000 per month from current Rs 7,000 while the maximum pay Rs 2.5 lakh per month from current Rs 90,000, which will be effective from January 1, 2016.

The panel also recommended a 14.27 per cent increase in basic pay. 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%.

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