The commission recommended 23.55 per cent increase in salary, allowances and pensions with a minimum pay of Rs 18,000 and a maximum of Rs 2.5 lakh per month to the Central Government employees.
Advertisement
As the above chart shows, the minimum basic salary of government employees has risen from Rs 35 as recommended by the first pay commission to its current levels in a matter of six decades.
A senior state government employee said that there should be constitution of new pay panel next year as it is mandatory to constitute the panel once in 10 years since the last panel’s recommendation was from 2007.
5- The 7th Pay Commission report favoured introduction of a health insurance insurance scheme for staff and pensioners.
Military service pay, which is a compensation for the various aspects of military service, will be admissible to the defence forces personnel only.
The pay rise will benefit more than 4.7 million employees and 5.2 million pensioners in the country.
“The total financial impact in the FY 2016-17 is likely to be Rs 1,02,100 crore, an increase of almost 23.55 per cent over the business as usual scenario”, the 7th Pay Commission report said.
The commission further suggested abolition of 52 allowances and submerged 36 allowances in existing or newly proposed allowances. All postal dispensaries should be merged with CGHS. Now the content of the report obviously the government was not aware.
“If it (government) can absorb wage hikes without compromising on its fiscal consolidation or capex targets, Thursday’s wage increase recommendation could indeed be a net positive for sustainable growth”, HSBC said in a statement here.
Rating agencies and brokerages are adamant that the 24 per cent pay hike will hurt government finances, though the Centre is insisting that the raise will not breach the fiscal deficit target.
“This will bring about complete parity of past pensioners with current retirees”.
Soon after the submission of the report, Jaitley told reporters here that a secretariat to implement the pay commission recommendations will be set up under the expenditure secretary. If accepted, the recommendations of the commission, headed by retired judge A K Mathur, would be effective from January.
The gratuity ceiling will be enhanced to Rs 20 lakh from Rs 10 lakh.
Citing view of Ministry of Home Affairs, Rae has differed, saying the age for superannuation can not be raised from existing 57 years to 60 years for all ranks as force personnel up to the rank of Commandant have operational/combat roles in the field, which require higher physical fitness and efficiency than the higher ranks of DIG and above in these four central armed police forces that are more supervisory and administrative in nature and do not require physical fitness of the level required in field units.
Advertisement
Consolidated monthly pay packages of Rs 4.50 lakh and Rs 4 lakh have been recommended for chairpersons and members, respectively, of regulatory bodies.
