7th Pay Commission: Here is the good and very bad news
There is some good news on the 7th Pay Commission. Employees of this state would be extended the benefits of the pay panel.
The Madhya Pradesh government announced Dearness Allowance to its employees, officials have said. The employees would get a 2 per cent increase in DA as per the recommendations of the 7th Pay Commission. A 3 per cent increase as per the 6th Pay Commission had already been done earlier.
As per Finance Department Principal Secretary Pankaj Agarwal's orders, the DA increase as per both the pay panels has been increased with effect from January 2018 and payable from February 2018 onwards.The decision on payment of increased DA was taken in a Cabinet meeting chaired by Chief Minister Shivraj Singh Chouhan.
Meanwhile a decision relating to the Central Government employees has been further delayed. Talks would resume once Arun Jaitley who is undergoing treatment is back. The portfolio is currently being handled by Piyush Goyal.
According to a Motilal Oswal recent report, at least six states have implemented the 7th Pay Commission in 2016-17, while the rest are yet to do so. The report stated that the 5th and 6th pay panels boosted physical savings, not consumption. This time, however, with limited arrears and generally lower increase in salaries, a boost to (physical) savings is doubtful, let alone consumption, it also said.