New Delhi. The Union Cabinet is ready to clear the final recommendation on salary hike on Wednesday as proposed by the 7th Pay Commission. The green sign by the Cabinet is been intently awaited by more than 1 crore government employees and pensioners.
The Cabinet is expected to commend higher increase in basic pay than the 15 percent as suggested by the 7th Pay Commission.
The pay panel had in November previous year proposed 14.27 percent hike in basic pay at junior levels, the lowest in past 70 years. The last 6th Pay Commission had recommended a hike of 20% which the government doubled while implementing in 2008.
After considering the suggested increase in allowances, hike in remuneration comes at 23.55 percent.
“Viewing the tight fiscal in current year, the government may improve upon the Pay Commission proposal for basic pay to 18 percent or at most 20 percent,” a senior official said.
The 7th Pay commission report will be practical from January 1, he said, adding that the Cabinet will decide whether the arrears for the six months will be paid in one go or in installments.
A secretaries’ panel, headed Cabinet Secretary P K Sinha, has already vetted the 7th Pay Commission recommendation and its report is being translated into a note for Cabinet.
“It in most probability will come up before the Cabinet tomorrow,” the official said.
The government had in January set up high-powered panel to prepare the recommendations of the 7th Pay Commission which will have bearing on the remuneration of 50 lakh central government employees and 58 lakh pensioners.
The Commission had suggested 23.55 percent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP.
The initial level pay has been suggested to be raised to Rs 18,000 per month from the current of Rs 7,000, while the maximum pay has been set at Rs 2.5 lakh per month from current Rs 90,000.
The secretaries’ panel may have recommended raising minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.
While the Budget for 2016-17 fiscal did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.
Around Rs 70,000 crore has been provisioned for it, the official said.