7th pay commission: J&K becomes first state to implement recommendations, 5 lakh employees to benefithttps://indianexpress.com/article/india/7th-pay-commission-jk-becomes-first-state-to-implement-recommendations-5-lakh-employees-to-benefit-altaf-bukhari-5150113/

7th pay commission: J&K becomes first state to implement recommendations, 5 lakh employees to benefit

J&K Finance Minister Altaf Bukhari said that despite the state reeling under financial constraints, the government would respect the commitment made by Chief Minister Mehbooba Mufti.

7th pay commission: J&K becomes first state to implement recommendations
J&K Finance Minister Altaf Bukhari said Jammu and Kashmir was the first state in the country to implement the recommendations. (File)

The Jammu and Kashmir government on Tuesday approved implementation of the recommendations of the 7th Pay Commission, becoming the first state in the country to do so. The decision will lead to 20 per cent average hike in the salary of employees, said Finance Minister Mohammad Altaf Bukhari, adding that it will benefit five lakh employees and pensioners. It will cast an additional burden of Rs 4,201 crore annually in respect to salaries and Rs 7,477 crore on account of one-time arrears on the state exchequer, he added.

It was a major commitment of state government promised in the budget, said Bukhari, adding that it has been the first time in state’s history that pay commission’s recommendations have been implemented without any agitation from employees and despite lack of resources. The decision came 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 on those retiring from government service upto 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 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 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 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.