7th Pay Commission implementation will revise basic pay as of now and other revision of allowances after working out by the committee.The government is likely to implement soon the new pay structure for central government employees excluding allowances, the compensatory perks for all employees.Though some central government employees oppose this exclusion, the finance ministry officials said the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th Pay Commission on allowances including HRA, transport allowance.
The Committee will complete its work in a time bound manner and
submit its reports within a period of 4 months, till a final decision,
all existing allowances will continue to be paid at the existing rates,
they added.No Dearness allowance (DA) will be paid in the new pay matrix (basic
pay) as the existing dearness allowance 125 per cent has been merged
with the new basic pay.A fitment factor of 2.57 will be applied across all levels in the pay
matrices. After taking into account the DA at prevailing rate 125 per
cent, accordingly, the salary of all government employees will be raised
by at least 14.29 % as on January 1. However, the rate of annual
increment has been retained at 3%.The Finance ministry placed the new wage structure in the
cabinet on June 29, The cabinet gave nod for the implementation of the
recommendations of the 7th Pay Commission on pay and pension benefits to
4.7 million central government employees 5.3 million pensioners. It
will come into effect from January, 2016.“The
notification of 7h Pay Commission recommendations now will be issued
shortly, so the central government employees will get the increased
salaries under the new pay matrix from August,” according to the
officials.This means though the new pay structure has been in place since
January 1, the central government employees will start drawing the
increased salaries from August and the arrears will be paid during the
current financial year.
However, there is resentment from Central government employees’
Unions in respect of minimum pay, they are demanding minimum pay Rs.
26,000 instead of Rs 18,000 and 3.68 fitment factor instead of 2.57. The
government assured them to consider their demands through a High Level
Committee, which will soon be set up and the government will take steps
accordingly.It’s notification will be issued within one month after the
decision of High level Committee coming stipulated time frame i.e. four
months.However, the notification on 7th Pay Commission recommendations,
which has been approved by the cabinet, is under process in the Finance
Ministry and the Finance Minister Arun Jaitley is pressing hard to issue
it very shortly,” they told The correspondent.
