The government is likely to implement soon the new pay structure for
central government employees excluding allowances, the compensatory
perks for all employees.
The the finance ministry officials said
the Cabinet decided to constitute a Committee headed by Finance
Secretary for further examination of the recommendations of 7th Pay
Commission on allowances including HRA, transport allowance.
The
Committee will complete its work in a time bound manner and submit its
reports within a period of 4 months, till a final decision, all existing
allowances will continue to be paid at the existing rates, they added.
No
Dearness allowance (DA) will be paid in the new pay matrix (basic pay)
as the existing dearness allowance 125 per cent has been merged with the
new basic pay.
A fitment factor of 2.57 will be applied across
all levels in the pay matrices. After taking into account the DA at
prevailing rate 125 per cent, accordingly, the salary of all government
employees will be raised by at least 14.29 % as on January 1. However,
the rate of annual increment has been retained at 3%.
The Finance
ministry placed the new wage structure in the cabinet on June 29, The
cabinet gave nod for the implementation of the recommendations of the
7th Pay Commission on pay and pension benefits to 4.7 million central
government employees 5.3 million pensioners. It will come into effect
from January, 2016.
“The notification of 7h Pay Commission
recommendations now will be issued shortly, so the central government
employees will get the increased salaries under the new pay matrix from
August,” according to the officials.
This means though the new
pay structure has been in place since January 1, the central government
employees will start drawing the increased salaries from August and the
arrears will be paid during the current financial year.
However,
there is resentment from Central government employees’ Unions in respect
of minimum pay, they are demanding minimum pay Rs. 26,000 instead of Rs
18,000 and 3.68 fitment factor instead of 2.57. The government assured
them to consider their demands through a High Level Committee, which
will soon be set up and the government will take steps accordingly.
“It’s
notification will be issued within one month after the decision of High
level Committee coming stipulated time frame i.e. four months.
However,
the notification on 7th Pay Commission recommendations, which has been
approved by the cabinet, is under process in the Finance Ministry and
the Finance Minister Arun Jaitley is pressing hard to issue it very
shortly,” they told The Sen Times.