FinMin to seek cabinet nod for 7th pay commission award by June-end

The finance ministry may seek Cabinet nod by June end to implement 7th Pay Commission award, The Sen Times learns from sources. It is more or less confirmed that a Cabinet nod will be required to help central government employees to neutralise the impact of inflation. The government intends to approve 30 per cent salaries hike of central government employees.

The Secretaries group has reached the conclusion to propose 30 percent basic pay raise instead of 14.27 per cen, which recommended was recommended by 7th Pay Commission but Finance Minister Arun Jaitley has yet to see the workout of secretaries group, sources said.

The Secretaries group has to share the information with the Finance Minister to get his approval. Following the clearance from the Finance Minister the 7th pay commission award would be got cabinet nod.

Earlier, the Secretaries group sought suggestions from all the stakeholders for drafting of their report on the 7th Pay Commission recommendations to address the concerns of central government employees in an effective manner.

It used to be just a customary affair, sources said.

Pay Commission award usually happens every 10 years in line with central government employees’ pay hike.

The 7th pay commission was set up by the UPA government in February 2014 to revise remuneration of about 48 lakh central government employees and 52 lakh pensioners.

The 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%.

Apart from this, the Commission also recommended for abolition of allowances and advances like risk allowance, small family allowance, festival advance, motor cycle advance.

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.

The Secretaries group is likely to purpose 30 percent basic pay hike of central government employees and it’s also advocating for doubling of existing rates of such allowances and advances, which has been recommended for abolition by the 7th Pay Commission.

The finance ministry sources said the pay hike is likely to be assumed greater importance since responsibility of central government employees have increased since the getting power of Prime Minister Narendra Modi.

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