New Delhi: The government will soon revise the 7th Pay Commission’s pay structures to reflect higher pay scales of central government employees, the government sources said, in an initiative that is expected to show the salary is higher than the previous pay commissions.
The Prime Minister’s Office (PMO) asked Cabinet Secretary P K Sinha who is heading the high-powered secretaries committee to examine the report of the 7th Pay Commission to revise higher pay structures of central government employees before handing over it to Finance Minister Arun Jaitley in July.
The Finance Ministry sources said: “the proposal will be placed before the cabinet for nod after the Finance Minister’s review.
“We don’t think secretaries committee will be able to hand over proposal to Finance Minister in this month, considering the Empowered Committee of Secretaries didn’t take a final decision of 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 for review the demands submitted by the central government employees unions. However, the new pay structure will be effective from January 1,” sources further said.
The Pay Commission headed by Justice A K Mathur proposed minimum pay to Rs 18,000 per month but the secretaries committee is likely to propose to make it Rs 24,ooo with hike basic pay around 30 per cent and the fitment factor is likely to be raised to around 2.7, up from 2.57 as recommended by the 7th Pay Commission in their next meetings, they added.
Once the minimum pay is hiked, salaries of 48 lakh central government employees will rise than the seventh Pay Commission recommendations.
They said everyone’s salary should be ‘automatically’ increased when the minimum pay is increased.
The basic pay for central government employees will have retroactive effect from January 1, 2016, but the allowances would be paid from the implemented date of 7th Pay Commission means from August after cabinet nod in July, they added.
The central government employees will get bonus and arrears ahead of coming festive season Dussehra, according to the pay scales of 7th Pay Commission, they confirmed.