7th Pay Commission: Latest updates on arrears and revised method to fix pay scale
The arrears paid as per the 7th Pay Commission recommendations has not had any major impact on the fiscal position of the central government employees. One of the main reasons for this is because the 6th Pay Commission had given a higher amount than this.
On the July 25, the Cabinet had cleared the recommendations. Central government employees have received an average 14.27 per cent hike in basic pay effective from January 1 2016.
Arrears have had no impact
It may be recalled that the 6th Pay Commission had recommended a 20 per cent hike. This was doubled when the government implemented the same in 2008. Thanks to this the impact was lower and some employees say that after the new recommendations were cleared, it has not had much impact on the finances.
How 6th Pay Commission reduced the impact
The 6th Pay Commission had given a higher amount when compared to the 7th Pay Commission. The hike which was to implemented by January 1 2006 came into effect only on January 1 2008. As a result of this, the arrears paid was much higher. While the earlier pay commission had recommended a hike of 20 per cent, the then government gave a hike of 40 per cent.
Modi government made no changes
The 7th Pay Commission had recommended a hike of 14.27 percent. The government however did not interfere with it and decided to go ahead it as was recommended.
Revised method to fix pay scale under 7th Pay Commission
It was observed that the pay fixed in 7th Pay Commission pay structure as per the methodology laid down in Board's letter dated 02.08.2016 is coming out to be less than 14.29% increase of pay prescribed by the commission in certain cases of Running Staff. It has now been decided that for fixation of pay for Running Staff category, in cases where the actual rise in pay at the time of initial fixation works out to be less than 14.29%, the initial pay in such cases shall be fixed at the next higher cell of the relevant Level in the Pay Matrix.