Central government employees to get salary hikes from August

New Delhi : The central government on Tuesday formally notified its acceptance of the Seventh Pay Commission recommendations, clearing the way for payment of increased salaries and pensions to around 10 million employees and pensioners with effect from August. Arrears dating back to January 2016 are expected to be paid before 31 March 2017. The government set up a committee under the department of

personnel and training to examine individual, post-specific and cadre-specific anomalies arising out of implementation of the Pay Commission recommendations. Central government employees’ unions deferred a strike they planned to start on 11 July to press demands for higher minimum pay after the government said a committee would study anomalies arising out of the recommendations and suggest remedial measures.

Government employee unions demanded minimum pay ofRs.26,000; the commission had recommended Rs.18,000. The commission recommended a 23.55% increase in overall emoluments for employees. According to the commission’s recommendations, the minimum monthly pay has been fixed at Rs.18,000 and the maximum at Rs.2.5 lakh at the level of cabinet secretary, the country’s senior-most civil servant.

According to the commission’s report, the financial impact of the recommendations in 2016-17 will amount to Rs.1.02 trillion. Of this, the increase in pay would account forRs.39,100 crore, increase in allowances for Rs.29,300 crore and increase in pensions for Rs.33,700 crore.

“The Government has accepted the Commission’s recommendations on Minimum Pay, Fitment Factor, Index of Rationalisation, Pay Matrices and general recommendations on pay without any material alteration with a few exceptions in Defence Pay Matrix in order to maintain parity in pay with Central Armed Police Forces, a gazette notification by the government said.

It said there shall be two dates for grant of increment, namely 1 January and 1 July of every year instead of the existing date of 1 July, provided that an employee shall be entitled to only one annual increment on either one of these two dates depending on the date of appointment, promotion or grant of financial upgradation.

The recommendations on allowances except dearness allowance have been referred to a committee comprising the finance secretary and secretary (expenditure) as chairman and secretaries of home affairs, defence, health and family welfare, personnel and training, posts and chairman, railway board as members. The committee will submit its report within a period of four months.

The recommendations of the Commission relating to interest bearing advances as well as interest-free advances have been accepted with the exception that interest-free advances for medical treatment, travelling allowance for family of deceased, travelling allowance on tour or transfer and leave travel concession shall be retained, said the notification.