7th Pay Commission: Will Arun Jaitley fulfill minimum pay hike demand of 50 lakh employees in Budget 2018?

January 12, 2018 170 Views No Comment

Around 50 lakh central government employees will be keeping an eye on the Finance Minister Arun Jaitley, who will table the Budget 2018 on February 1 in hope to get some relief over the minimum pay hike issue.

Experts also believe that there could be some announcement related to a hike in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission. The government may constitute a high-level committee to fix new pay structure beyond the recommendation of the 7th Pay Commission.

In 2016, a day after the Cabinet cleared the 7th Pay Commission recommendations in June, Arun Jaitley had promised to appoint a high-level committee to look into the issue of hike in minimum pay and fitment factor. However, the committee has not been formed yet, according to India.com

But later the government had formed the National Anomaly Committee (NAC) in September 2016 to resolve all matters related to the implementation of the 7th Pay Commission‘s recommendations.

But the verdict on minimum pay hike issue of the employees remain uncertain as a letter from the Department of Personnel and Training (DoPT) to Secretary of Staff Side Shiv Gopal Mishra stated that the mentioned demand is beyond the recommendation of the 7th Pay Commission does not appear to be treated as an anomaly, therefore, these do not come under the purview of the NAC.

The Seventh Pay Commission had earlier recommended Rs 18,000 as the basic salary but the employees are demanding it to raise further to Rs 26,000.

Meanwhile, it seems that the Maharashtra government is not in a hurry to implement the 7th Pay Commission report for its 19 lakh employees. It may instead time it ahead of the next assembly election slated for 2019 to reap political benefits. Some BJP ministers, who didn’t wish to be named , hinted that employees may have wait more as the government has assured pay scale and allowance rise as well as payment of arrears in installments.

The government has calculated an annual outgo of Rs 24,000 crore based on the strength of government employees at 19 lakh to facilitate implementation of the 7th Pay Commission report.

A senior minister told DNA, ‘’It is true that the government cannot afford to hurt its employees as it may prove disastrous. The employees have assured cooperation and have expressed full confidence in government’s intention.’’

The much ambitious crop loan waiver scheme announced in July last year worth Rs 32,000 crore covering more than 53 lakh farmers is one of the reason behind this delay as per the minister. Minister added that currently the government’s priority is to implement the waiver by removing technical glitches and by transferring necessary funds in the banks.

He cited that the government has already imposed 30% cut in the budgetary spending which has brought in curb on the development expenditure.

Currently, a high level panel headed by the retired bureaucrat KP Bakshi appointed in January 2017 is in the midst of completion of its exercise.

Bakshi told this correspondent,’’ Already the committee has held six meetings with various stake holders. The committee is awaiting the approval of the state finance department to launch a portal for inviting suggestions from various unions of government employees. Thereafter the committee will need to pen its report and submit it by end June this year. ’’

Officer from the state finance department said once Bakshi Committee submits its report then time is needed for cabinet’s approval.

However, the Maharashtra State Gazetted Officers Federation insists that the government must implement the 7th Pay Commission report from April onwards.

Source: DNA

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