Friday, 8 July 2016

7th Pay Commission – Even Chance for Issue of 7th CPC implementation Notification

Now that Government avoided Strike Action over modification of 7th Pay Commission report. Will it go ahead with its implementation plans now?

7th Pay Commission – Even Chance for Issue of 7th CPC implementation Notification pending submission of reports by Committees for Allowances, Minimum Pay and Fitment Formula

7th-Pay-Commission-7CPC

After Cabinet decided to approve recommendations of 7th Pay Commission on 29th June 2016, without any change in the quantum of allowances for time being, Finance Ministry was working on hectic pace to issue notification.

This notification is meant for framing revised Pay Rules for new 7th CPC Basic Pay and retirement benefits such as Pension, Gratuity etc., with suitable provisions for paying allowances in pre-revised pay till Government decides on the report of Allowances Committee. The report of Allowances Committee is expected to be submitted in 4 months.

However, after wide-spread disappointment and protests over revised minimum pay and fitment formula, Council of Ministers conducted overnight talks with Union / Staff Side Association leaders on 30th June 2016.

During the meeting, the Council of Ministers promised for constituting a Committee to look into Minimum Pay and Fitment Formula.

Needless to say, this was a prudent move of Govt to avoid Indefinite Strike planned by all Central Government Employees and Railway Employees from 11th July 2016.

On 6th July 2016, Govt has issued a press release to the effect that it would form a high level Committee to review the 7th pay Commission recommended Minimum Pay and Fitment Formula once again.

Now, it remains to be seen whether Govt would issue Notification for implementation of 7th Pay Commission recommendations in the lines of Cabinet for the same on 29th June 2016, pending submission of reports by Committees formed / yet to be formed, to study the need for revising allowances, Minimum Pay and Fitment Formula more than what was recommended by 7th Pay Commission.

Highly places sources say, there are even chances for the issue of Notification for implementing the 7th Pay Commission recommendations pending submission of reports by Committees.

Govt may take such a decision in order to implment 7th pay commission recommendations well prior to start of model code of conduct in respect of Assembly Elections in major states such as Punjab, Uttarakhand etc.
Assembly Elections are due in March 2017 for Four States viz., Punjab, Uttarakhand, Manipur and Goa. The term of State Government in Uttar Pradesh ends in the month of May 2017

Alternatively, Govt will have to issue Notification for implementation of 7th Pay Commission recommendations.

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