Seventh Pay Commission: Central Govt employees likely to get 'increased payout' by June-July 2016

Updated: Saturday, April 30, 2016, 16:04 [IST]

New Delhi, April 27: Modi Government is all set to implement recommendations of Seventh Pay Commission. Reportedly, the notification for the 'increment process' will be issued in the month of June.

It is being believed that Centre will issue notification most likely in the third week of June after Cabinet's nod.

A Finance Ministry sources was quoted by a news website as saying, "But in case it's not issued in third week of June, it will be issued at the beginning of fourth week of June. Usually it takes around one week to issue a notification, after cabinet nod".

Ministry is also hopeful that Empowered Committee of Secretaries which is looking after the recommendations at the moment, will submit its report by June 15.

According to a CNBC TV report, most likely increased payout will be handed over to central government employees earliest at the end of June or latest by July. Report says that Empowered Committee of Secretaries which has been entrusted the responsibility to overview recommendations will not make much change into it.

A Government official was quoted as saying, "The payments will be made in installments and the salary, pension arrears will be cleared first but higher allowances will be prospective".

Earlier, Modi government conceded that implementation of new pay scales proposed by the 7th CPC is estimated to put an additional burden of Rs 1.02 lakh crore which is around 0.7 per cent of GDP.

Giving details of financial implications of the recommendations, Minister of State for Finance Jayant Sinha informed Parliament that the burden on pay head would increase by Rs 39,100 crore to about Rs 2.83 lakh crore in the current fiscal.

Sinha also said that the announcement of Dearness Allowance has no impact on the recommendations of the Pay Commission.

The Empowered Committee of Secretaries headed Cabinet Secretary P K Sinha to process the recommendations of the 7th Pay Commission was set up in January. The recommendations of the Pay Commission will have bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.