The pay commission has also proposed a status quo on the retirement age of central government employees. “Around Rs 74,000 crore would be the impact on the Union Budget and Rs 28,000 crore on the Railway Budget”, Mr Jaitley said at his residence after he received the report from Justice A.K. Mathur, Chairperson of the Commission.
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Without calling it one-rank one-pension (Orop), the pay panel recommended a revised pension formulation for central government employees, including paramilitary personnel, and for defence staff who will retire before January 1, 2016, according to PTI. Minimum pay set at Rs 18,000 and maximum at Rs 2.25 lakh with the cabinet secretary’s emolument at Rs 2.5 lakh per month.
The expenditure on account of other allowances is likely to go up to Rs 36,400 crore, an increase of Rs 12,100 crore or 49.79 per cent.
The 23.55 per cent increase includes hike in allowances.
Out of the total financial impact of Rs1,02,100 crore, Rs73,650 crore will be borne by the General Budget and Rs28,450 crore by the Railway Budget.
“Total financial impact of this on funds of Union Government exclusively is Rs 1, 02,000 crores”.
India’s federal government has close to 5 million employees while states and local bodies employ over 10 million staff. Not to forget the latent demand from 5.5 million pensioners of central government and an equivalent at the state levels that stand to benefit when the dearness allowances are adjusted upwards following the Pay Commission mandate.
In a significant recommendation, it enhanced the ceiling of gratuity from the existing Rs 10 lakh to Rs 20 lakh. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix. However all non-interest-bearing advances will be abolished.
IAS officers presently get a two-year edge over other services for getting empanelled to come on deputation at the Centre.
The commission has proposed denial of increments to those who do not meet benchmarks under a career progression system or for promotion in the first 20 years of service. Now with the implementation of the 7th Central Pay Commission, it is a concern that this will coincide with a rise in recurrent expenditure of the government.
For those serving in the hard Siachen glacier, the pay for service officers is proposed at Rs.31,500 per month, against Rs.21,000 per month now, and Rs.21,000 for junior commissioned officers, against the present salary of Rs.14,000. All postal dispensaries should be merged with CGHS. Similarly, house building advance has been pushed up to Rs 25 lakh or 34 times of basic pay after 5 years of service.
“Increase the pension for armed forces to 90 percent (of last salary) for the JCOs and ORs and 70 percent to officers”, the veteran said.
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Besides Chairman, other members of the Commission are Vivek Rae, a retired IAS officer of 1978 batch, and Rathin Roy, an economist.
