Review panel devises 7th Pay commission complexity

New Delhi: The review panel that is examining the 7th Pay Commission recommendations, has formulated a fresh approach to deal with the issue of complexity over implementation of the 7th Pay Commission report.
According to Finance Ministry official involved with the process of 7th Pay Commission recommendations’ implementation, the Empowered Committee of Secretaries (review panel) headed by Cabinet Secretary P K Sinha has decided to make up pay gap between employees and higher officers and to continue allowances and advances, which was scrapped by the pay commission.

The review panel is now working on an effective mechanism for implementation of the 7th Pay Commission report by resolving the issues that arose over pay gap between low paid employees and top level officers as the Prime Minister’s Office (PMO) has reportedly asked them for it.

A proposal for raising basic salary of the central government employees by 30 per instead of 14.27 per cent, was recommended by the 7th Pay Commission is also under study. This is a very rough average because for low paid employees may get more basic pay hike, officials said on Thursday.

Accordingly, minimum basic salary is likely to hike at least Rs 24,000 from Rs 18,000 recommended by the Seventh pay commission, they added But the final decision on the row over better pay hike is expected to come from PMO in next month.

People, familiar with the development, told the Sen Times that for the reason the review panel wish a speedy process on the 7th Pay Commission report during their next two meetings.

“The final proposal on the proposed pay matrix for central government employees will be sent to the Finance Minister Arun Jaitley in the next few weeks,” officials told us.

On receipt of the proposal from the review panel it would be placed before the cabinet for its nod through Finance Minister, they added.

Under the prevailing circumstances, the central government employees are unlikely to draw salaries under the new pay matrix before August.

Officials, however, said whenever the new pay matrix would come into effect, the central government employees would get their enhanced salaries with effect from next year January 1 but they will get the benefit of allowances like House Rent Allowance, Transport Allowance from the date of implementation of the 7th Pay Commission recommendations.

The complexity over implementation of the new pay commission cropped up soon after the recommendation made by the Seventh Pay Commission headed by Justice A K Mathur.

The central government employees are in for disappointment as the 7th Pay Commission report has been proposed a 14.27 per cent hike in basic pay, which is significantly lower than what the 6th pay commission had recommended. Sixth Pay Commission had recommended a 20 per cent hike in basic pay which the government doubled while implementing it in 2008.

The central government employees also prefer continuation of some allowances and advances like risk allowance, small family allowance, festival advance, motor cycle advance but the 7th Pay Commission recommended scrapping of those.

The officials also confirmed that the review panel is likely to propose doubling of existing rates of allowances and advances, which has been recommended for abolition by 7th Pay Commission like risk allowance, small family allowance, festival advance, motor cycle advance.

The Seventh Pay Commission proposed the highest basic salary at Rs 250,000 and the lowest at Rs 18,000 for the central government employees.

The Seventh Pay Commission has recommended abolition of pay band and pay scales, and replacing them with what is known as a pay matrix. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the pay matrix.