Jammu and Kashmir created history after it implemented the recommendations of the 7th Pay Commission. Following this decision a 20 per cent average hike in the salaries of employees could be witnessed, according to Finance Minister Mohammad Altaf Bukhari.
He also added that the decision would benefit 5 lakh employees and pensioners. The decision would cost the state an additional burden of Rs 4,201 crore annually in terms of salaries and Rs 7,477 crore on account of one-time arrears on the state exchequer, he added.
Bukhari said it was a major commitment of state government promised in the budget. He also added that this has been the first time in the history of the state that pay commission's recommendations have been implemented without any agitation from employees and despite lack of resources.
The decision was made at a meeting of the state cabinet chaired by Chief Minister Mehbooba Mufti and attended by both PDP and BJP ministers, including Deputy Chief Minister Dr Nirmal Singh.
Employees can draw their revised salary from the current month itself and the arrears accruing on account of implementation of 7th Pay Commission recommendations will be credited to their GP Fund account as has been the practice in the past. There will be three years moratorium on withdrawal of these arrears by employees, but such a restriction will not be applicable to those retiring from government service up to March 31, 2021. The arrears shall be paid to pensioners in cash in three installments after every six months.
Following the implementation of 7th Pay Commission recommendations, the basic pay of employees as on December 31, 2015, shall be multiplied by the uniform factor of 2.57 and then adjusted in the matrix recommended by the pay committee, an official release here said. The benefit of House Rent Allowance on revised pay shall be available from April 2018 and all allowances except Dearness Allowance shall continue as before, it said, adding that DA from January 2016 onwards shall be payable on revised pay on new rates to be notified by the Finance Department.
Gratuity shall be enhanced from the existing ceiling of Rs 10 lakh to Rs 20 lakh with effect from January 1, 2016, with an increase in ceiling gratuity by 25 per cent whenever DA rises by 50 per cent as recommended by 7th Pay Commission as per the pattern of Central government. The pensioners shall be given the option to choose revision of pension by any of the two formulations suggested by the Pay Committee. The cabinet left the implementation of 7th Pay Commission recommendations in respect to employees of Public Sector Undertakings and autonomous organisations on the availability of resources with respective organisations.