New Delhi: Government will issue notification for implementation of 7th Pay Commission recommendations this week, a Finance Ministry’s official said on Monday. 7th Pay Commission report will be effective from January 1, Finance Minister Arun Jaitley said during a press conference following a Cabinet meeting on June 29.
“The Finance Ministry will issue notification for implementation of 7th Pay Commission recommendations this week, after which it will be put on the department site for downloads,” the official told The Sen Times.
Thereafter, the central government employees could get the revised pay from their August salaries and arrears are to be also paid in this Financial year, he said. “Once issued by the Ministry, the notification will be given all pay panel benefits to 4.8 million central government employees and 5.2 million pensioners except allowances.” he added.
7th Pay Commission recommendations relating to allowances has been referred to a Finance Secretary Committee by the cabinet. It will complete its work in a time bound manner and submit its reports within a period of 4 months, till a final decision, all existing allowances to be paid as per the existing rates in existing pay structure, the cabinet note says.
The Prime Minister’s Office (PMO) has been pushing hard for early payment of 7th Pay Commission pay hike as it says it will help the central government employees and pensioners in a better way of life. The Union Cabinet last month approved the recommendations made by the 7th pay commission. It accepted the recommendation to increase minimum pay from existing Rs 7,000 to Rs 18,000 per month. A fitment factor of 2.57 would apply for pay revision of all employees and the rate of annual increment has been retained at 3%. The new pay structure has dropped the pay bands and grade pay and okayed a new pay matrix. The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.
There is resentment from central government employees’ Unions in respect of minimum pay, they are demanding minimum pay Rs. 26,000 instead of Rs 18,000 and 3.68 fitment factor instead of 2.57.
The government assured them to consider their demands through a High Level Committee, which will soon be set up and the government will take steps accordingly but it will not affect issuing of notification for implementation of 7th Pay Commission.
The 7th Pay Commission report will be effective from January 1, Finance Minister Arun Jaitley said during a press conference following a Cabinet meeting on June 29, adding that the Cabinet will decide if the arrears for the six months have to be paid in one go or in installments.