The Empowered Committee of Secretaries, which was formed to look into recommendations of the Seventh Pay Commission, has finalised its report, Finance Secretary Ashok Lavasa said on Monday. The Union Cabinet is expected to take up the committee’s report in its meeting on June 29.
“The committee very recently had their last meeting. They have taken a final decision. Now, we are waiting for the minutes of the meeting. We will soon draft a cabinet note based on the report,” Lavasa told reporters.
The government had in January set up a panel headed by Cabinet Secretary P K Sinha to process the recommendations of the Seventh Pay Commission, which will change the remuneration of 47 lakh central government employees and 52 lakh pensioners.
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The Seventh Pay Commission, which submitted its report in November, had recommended an overall 23.6 per cent increase in salaries and pensions of central government employees.
Even though the government did not explicitly specify an amount for Pay Commission provisioning in the Union Budget for 2016-17, it had said that an interim allocation for various ministries was made in the Budget. If the Pay Commission’s recommendations are accepted, the total expenditure of the government on salaries and pensions is expected to increase by Rs 1.02 lakh crore in a financial year, including Rs 28,450 crore provisioned in the Railway Budget.
The Seventh Pay Commission has recommended a minimum monthly basic salary of Rs 18,000 and a maximum of Rs 2,50,000. The Pay Commission recommendations will be effective from January 1, 2016.
The implementation of the Seventh Central Pay Commission awards can have a significant bearing on the inflation trajectory through both direct and indirect channels, with the housing and transportation sectors projected to see the biggest impact of the potential increase in spending capacity of government employees.