7th Pay Commission: Cabinet to decide final payout for central government employees on June 29

New Delhi: The much awaited seventh pay commission is going to enter the last phase of implementation soon.

The Union Cabinet is expected to take up the recommendations of the 7th Pay Commission on June 29.

As per reports, Prime Minister has directed Finance Ministry to implement the Pay Commission for government employees, and place the Empowered Group of Secretaries report on the central government employees' salary and allowances hike in the next Cabinet meeting on Wednesday, June 29.

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.

With the threat of strike by central government employees looming large, the Cabinet is expected to take a prompt decision on the recommendations resulting in notification.

The salary hikes recommended are expected to apply from July.

7th pay commission on July 1

*7th Pay Commission Award From July 1*
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Finance Minister Arun Jaitley will take the Empowered Committee of Secretaries proposal
to the Union Cabinet for its approval in this month

New Delhi: A Finance Ministry’s official today said new pay scale for all central government officials and employees under the 7th Pay Commission award will be implemented from July 1, 2016.

“The 7th Pay Commission award will be implemented after taking decision of the cabinet in light of recommendations made in the reports of the 7th Pay Commission and the recommendations Empowered Committee of Secretaries,which will be made on June 11″ he said in reply to our question

_The cabinet expects giving the 7th Pay Commission award to central government employees in the next month, The Prime Minister Narendra Modi will give his approval to the 7th Pay Commission award like he approved the proposal of extending the retirement age of all doctors of the Central Health Service to 65 years, creating a record of sorts by clearing the proposal in less than than 24 hours of receiving it from the Health Ministry, said a top PMO official on Tuesday asked not to be named because he was not authorized to release the information_.

The Empowered Committee of Secretaries would scrutinise recommendations of the 7th Pay Commission on June 11 finally to make government able to announce the 7th Pay Commission award to implement from July 1, Finance Ministry official said.

Accordingly, the brightest diyas of coming Diwali will be lit outside houses of central government employees. For, when the rest of the world is reeling under the fear of losing jobs.

The 7th pay commission recommendations’ implementation could not have been timelier, some economic experts say. So when the world is plunging in recession, central government employees are busy counting their blessings along with the hard cash they will receive in August as arrears from January 2016.

The several central government establishments such as the railways, telecom, air force, army, CPWD, CRPF, DRDO, CISF, Income Tax, Survey of India, customs and excise, among others are in happy mood.

These would perhaps live up to the ‘happy and prosperous’ Diwali greeting. After all, they will get arrears as well as bonus ahead of festive season.

The 7th Pay 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%.

The previous Sixth Pay Commission had recommended a 20 per cent hike in basic pay which the government doubled while implementing it in 2008.

*A 13 members Empowered Committee of Secretaries, led by cabinet Secretary P K Sinha was formed in January to review the recommendations of 7th Pay Commission before cabinet nod and the committee is likely to finalize its work on June 11*.

The Empowered Committee of Secretaries is likely to reach the conclusion to propose 30 percent basic pay raise instead of 14.27 per cent, which was recommended by 7th Pay Commission. They are also mulling for doubling of existing rates of such allowances and advances, which has been recommended for abolition by the 7th Pay Commission, sources said.

Finance Minister Arun Jaitley will take the Empowered Committee of Secretaries’ proposal to the Union Cabinet for its approval in this month,” they said.

The new pay scales will be effective from January 1 for all central government employees

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