Revised Pay-Scales for Salaries of Central Government Employees in India Awaits Finalisation

June 15, 20163:35 pm597 views

Finalisation to the changes on the 7th Central Pay Commission recommendations was to be announced over a meeting of the group of secretaries headed by Cabinet Secretary P K Sinha on June 11, which did not take place. No dates have yet been revealed on the next upcoming secretaries panel meet to decide on the final payout to central government employees in India.

The recommendations by the 7th Pay Commission when implemented would have a bearing in remuneration of 47 lakh central government employees and 52 lakh pensioners. The 7th pay panel suggested 23.55% hike in pay and allowances of government employees. Pay will go up by 16%; increase in allowances will be 63%; increase in pension will be 24%.

Reports state that, the government will disburse the revised pay scales ‘increment’ in the first week of August. Sources close to Finance Ministry official was quoted by Financial express as saying, “Central government employees could get the revised pay-scales with their July salaries that would be credited on August 1.”

The 7th CPC had recommended a minimum monthly basic salary of Rs. 18,000 and maximum Rs. 2,50,000. A 30 percent increase would translate into minimum salary of Rs. 23,400 and maximum at Rs. 3,25,000, respectively.

The overall financial impact on the Central government arising out of the implementation of the recommendations of the 7th CPC is expected at Rs. 1,02,100 crore for the current fiscal, International Business Times reported.

Salaries and allowances without the implementation of the recommendations would have been Rs. 4,33,500 crore. If the recommendations in their present form are implemented, the salary and allowances bill would go up to Rs. 5,35,600 crore, a rise of 23.55 percent (Rs. 1,02,100 crore).

Executives and employees of the Central Public Sector Enterprises (CPSEs) or state run companies are in for a pay hike in 2017. The government has appointed a 3rd Pay Revision Committee (3rd PRC) headed by Retired Justice Satish Chandra to review and revise the existing structure of salary and emoluments of CPSE executives, Economic Times reports.

“Recognizing that in the prevailing business environment in the country and in the world, the CPSEs have to be commercially viable and competitive, and that the employees of the CPSEs have to be provided with suitable working conditions, emoluments and incentives to motivate them to strive for further growth, productivity and profitability of their enterprises, the Government of India has decided to review and revise existing structure of salary and emoluments of the CPSE executives,” says a notification.

The 3rd PRC will submit its report in six months and the government’s decision on the recommendations of the committee will take place from January 1, 2017.

The Secretaries’ group has recommended a wage hike of Rs 21,000 for the lower level and Rs 2.7 lakh for the upper level central government employees. This is Rs 3,000 more for the lower level and Rs 20,000 more for the upper level prescribed by the 7th CPC, DNA India reports.

It wasn’t immediately clear whether the arrears will also be credited along with the revised pay, which means it isn’t clear yet whether the past dues will be credited at one go or will be paid out in instalments.

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