Finally, the most awaited, yet the controversial 7th pay commission is likely to be announced to boost the central government employees’ survival prospects. The implementation which was due from Jan 1, 2016 was to be implemented during FY 2016-17.
Prime Minister Narendra Modi on Monday directed the Finance Ministry to implement the 7th Pay Commission recommendations, results of which could be termed as a huge bonanza for lakhs of government employees.
The move will be cleared in the Cabinet meeting which will take place on Wednesday.
Implementation of new pay scales recommended by the 7th Pay Commission is estimated to put an additional burden of Rs 1.02 lakh crore on the exchequer annually.
Finance Minister Arun Jaitley had in his Budget for 2016-17 provisioned Rs 70,000 crore towards Seventh Pay Commission awards, which is around 60 per cent of the incremental expenditure on salaries.
It is expected that Empowered Group of Secretaries panel has raised the fitment factor to around 2.7, up from 2.57 as recommended by the 7th Pay Commission. The entry level salary is expected to rise to Rs. 23,000, up from Rs. 18,000 as recommended by the AK Mathur panel. Implementation of the Pay Commission report is going to cost the government Rs. 1.02 lakh crore.
The Commission will revise the pay of nearly 47 lakh central government employees and 52 lakh pensioners, which will be effective from January 1, 2016.