HomeSeventh Pay CommissionGovernment announces Seventh Central Pay Commission

Government announces Seventh Central Pay Commission

The government announced the setting up of the Seventh Central Pay Commission (CPC) ahead of elections, heralding the prospect of salary increases for nearly 80 lakh employees and pensioners, although the actual revisions will take about three years or so and could put finances under strain at the time.

“The average time taken by a Pay Commission to submit its recommendations has been about two years. Accordingly, allowing about two years for the 7th CPC to submit its report, the recommendations are likely to be implemented with effect from 1.1.2016,” Finance Minister P Chidambaram said in a statement issued by the government on Wednesday.

The Sixth Pay Commission came into effect on January 1, 2006. Prime Minister Manmohan Singh has approved the constitution of the Seventh Pay Commission, Chidambaram said in the statement. The commission’s terms of reference and its members will be announced later. Five state governments go to the polls in November while general elections are expected to be held in May next year.

The government constitutes a pay commission almost every decade to revise the pay scales of its employees, who get an inflation-linked dearness allowance twice a year but no salary revisions as in the private sector.

State governments usually adopt the recommendations after suitable modifications. The commission award tends to impose a significant burden on government finances.

Central government spending on salaries and allowances of just the civilian employees (those who don’t belong to the defence services) rose nearly 40% in 2008-09 after the Sixth Pay Commission award from a year before.

The higher spending came just as the global financial crisis broke, forcing the government to announce measures to prop up growth. The fiscal deficit rose to 6% in 2008-09 and 6.5% in 2009-10 from 2.5% in 2007-08, a slippage the government has still not managed to rein in. Chidambaram last year announced a road map to trim the fiscal deficit to 3% of GDP in 2016-17.

Although higher salaries will mean more disposable income in the hands of government employees, the pay commission award could burden government finances and push back the fiscal recovery.

“No doubt, the Seventh Pay Commission will lead to demand increase in the economy, but it will lead to consumption-led and not investment-led growth,” said Devendra Kumar Pant, chief economist, India Ratings. “If in 2.5 years, the economy does not recover, in terms of growth and fiscal deficit, it will be a big load for the centre and states.”

Trade unions welcomed the constitution of the commission but demanded that they be set up every five years. Congress party general secretary in charge of communication Ajay Maken welcomed the setting up of the pay commission on Twitter. “The government should attract best of talents…Pay commissions help in attracting and also retaining best available talents,” Maken said.

Planning Commission member Arun Maira said at a Ficci seminar in Kolkata: “All government employees will want it while others may not… This is a big election force… It is an interesting situation since it is election time.”

Source : The Economic Times

joinwhatsapp

14 COMMENTS

  1. Defence forces as well as armed forces(bsf,cisf,crpf,itbp,assam rifles,ssb) should be given equality paywise and rest of the facilities.
    Employees of forces cant go for strike ,agitation and retaliation against govt .they just know how to perform duty in a reasonable manner ,they have been cut from civil life thats why they cant pay attention towards what is happening in rest of india.if country faces war again ,people of india will remember force personnel.
    force personnel should be given priority paywise .

  2. Here Its not only about the 7th CPC it is also the matter of defense services. Defense services comes under third class services but its grade pay is like fourth class services, why? what is the reason behind its grade pay and thats why noone wants to do our job in a correct manner. You can also apply your mind that defense personnel is doing our duty in a border area let it be summer season or winter season. and the payment of difference in officers and sepoy is much more while in other country the difference of payment is not like India between officers and sepoy the maximum difference of payment should be 10 to 15 thousands but in India more than 30 thousands why while sepoy does more works than officers. What is the reason behind it please reply me. Thanks.

  3. why not HRA to retired enployees who are bound/compelled to reside in rented home with their old spouse. and fixed medical allowance of Rs 300/- PM is no sufficient whereas only consultation fee of a doctor is not less than Rs 500/- and medical expenses in c/w heart, lever, lungs and kidney comes into lacs of Rs

  4. 7th pay commission,while considering recommendations a special attention should be given to facilitate the senior citizens (pensioners). After retirement mare the amount of Rs.300/- is not sufficient to meet medical expenses of a family, the amount of medical allowance may be increased and re-embursment of indoor patients may also be recommended on the pattern of Punjab Govt.Also like Punjab Govt.LTC is given to its pensioners after every two years i.e. equivalent to the basic pension. Again like Punjab Govt.an increase of five percentage of their basic pension is given to its pensioners after every five years starting at the age of 65 years.If a state govt. of India can give these facilities to its pensioners then the central govt. employees who serve the nation through out country.

  5. In the 6th PC most affected people is Group C(GP-1900 in CSIR Gr-II) we have given lot of application to upgrade the GP and reduce the Duration of promotion period No reply from govt. Also the allowances like telephone, paper, Internet must be given to above employees. those people getting salary more than 35,000 (from PB-2) they can pay them self but for us PB-1 its very difficult to pay for those thinks. I kindly requesting to the 7th Pay Commission people to take necessary action to get the allowances lower pay Employees also.

    Those pe but nothing happened

  6. CAN ANYBODY EXPLAIM THE BELOW DOUBT

    IN OUR ORGNISATION PRE REVISED SCALE OF ACCOUNTS ASSISTANT WAS 5000-8000 AND JR. ACCOUNTS OFFICER (PROMOTION POST OF ACCOUNTS ASSISTANT) 5500-9000. NOW BOTH THE SCALE IS MERGED AND FIXED IN *9300-34800 WITH GRADE PAY OF 4200. NOW AFTER 20 YEARS OF SERVICE OF ACCOUNTS ASSISTANT HIS GRADE PAY WAS FIXED TO 4800 HOW EVER THE PERSON JOINED AS JR. ACCOUNTS OFFICER (REPORTING OFFICER OF ACCOUNTS ASSISTANT) GRADE PAY IS FIXED AT RS. 4200/- AND ALSO THE ACCOUNTS OFFICER IS FIXED IN RS. 4600/- (PROMOTION POST OF JR. ACCOUNTS OFFICER) NOW THE PROBLEM HAS ARISED THAT THE ACCOUNTS ASSISTANT HAVING THE GRADE PAY OF rS. 4800/- SAYS THAT HE WILL NOT REPORT EITHER THE JR. ACOUNTS OFFICER OR ACCOUNTS OFFICER BECAUSE BOTH THE OFFICERS ARE DRAWING THE LESSER GRADE PAY THAN ME.

    ALSO ONE ACCOUNTS OFFICER WHO HS PROMOTED TO ACCOUNTS OFFICER IS DRAWING THE GRADE PAY OF 4800/- HOW EVER THE OTHER ACCOUNTS OFFICER EVENTHOUGH JOINED EARLIER IE AFTER THE DATE OF ACCEPTANCE OF 6TH PAY COMMISSION NOT READY TO ACCEPT THE ACCOUNTS OFFICER JOINED EARLIER THAN HIS PROMOTION BUT AFTER THE 6TH PAY COMMISSION ACCEPTANCE AS HIS REPORTING OFFICE DUE THE LESS GRADE PAY THAN HIM

    CAN THESE TWO POINTS MAY PL CLARIFY

  7. IN 6TH PAY COMMISSION THERE ARE SO MANY ANOMOLIES BOTH FIXATION OF GRADE PAY AS WELL AS GRANT OF MACP. IN THE LOWER GRADE AFTER WORKING 10 YEARS HE WILL GET RS. 100 IN GRADE PAY HOWEVER IN THE OFFICER GRADE IT IS RS. 1200/- ALSO AFTER THE FIXATION IN THE GRADE PAY SOME GROUP C AND GROUP B IN THE SAME CADRE THERE WAS TOO MUCH PROBLEM FOR OFFICE WORK. SAME BAND PAY AND GRADE PAY IN DIFFERENT GROUP IE GROUP B AND C IS NOT CORRECT/ACCEPTABLE . IN THIS CPC MAY CONSIDER SUCH TYPE AND CLEARLY IDENTIFY THE GRADE A,B C,& D FOR FIXATION OF PAY BAND AS WELL AS GRADE PAY

  8. The Seventh Pay Commission should protect the Experienced, Honest, Sincere, Dyanamic, Fearless Govt. Servants from the Political Leaders and pave way for proliferation of such personales in the Govt. Machinery and take constitution to all Citizens and corners of India.
    It is suggested to include and implement incentive method for Efficient, Sincere, Honest and Experienced Govt.Servant by providing promotion through Non- Selection method irrespective of R.R by a committee constituted in a State or U.T Government by receiving proposals from concerned Department (as done in MACP).

  9. We have seen so many recommendations of different Pay commissions but the reward for best worker is not defined and not seen implemented by any monitoring division of the Govt. Machinery at state level or U.T level. It is suggested to include and implement incentive method for Efficient, Sincere, Honest and Experienced Govt.Servant by providing promotion through Non- Selection method irrespective of R.R by a committee constituted in a State or U.T Government by receiving proposals from concerned Department (as done in MACP) and the Service Associations including Public.Please reward the meritorious Government Servant (they don’t want it)but there should be a high standard of thinking about Government Service comprising of Sincere and Dynamic Public Servants also who are not recognised yet whereas this Indian Union stands on those pillars only. The Seventh Pay Commission should protect the Experienced, Honest, Sincere, Dyanamic, Fearless Govt. Servants from the Political Leaders and pave way for proliferation of such personales in the Govt. Machinery and take constitution to all Citizens and corners of India.
    D.R.Murugesan, 31 years Govt. Service in this Indian Union.

  10. MACP must be in promotional hierarchy instead of granting higher grade pay. And like all group A services where atleast 5 promotions are sure all group B,C &D must get 5 career upliftments

  11. The decision announcing 7th CPC is welcome. But there is nothing for the employees and pensioners to cheer about it. Because a cow printed in paper does not eat grass. Looking behind the earlier CPCs there is nothing new in this ; normally the 7th CPC definitely ought to come in due course w.e.f.1.1.2016. Considering the drastic changes occurring in prices and money values making life difficult, the relief of CPC should have taken effect from 1.1.2011 and every five years thereafter. A true compensated interim relief alone would have a happy decision. More importantly ,The accepted recommendations of the 6th CPC like health Insurance Scheme is still a paper cow. The central govt pensioners living in non CGHS areas have to meet all the medical needs of the family with Rs.300 per month which is not sufficient for one time auto charges. it is just cruel to the senior citizens who toiled their entire life for serving the Central Govt.The statement of the Hon’ble Minister in Rajyasabha that no time frame for implementation can be given is disappointing and alarming for the pensioners.We have only one option. Take whatever is given by the master and keep quiet.Believe in God pray for the better.

  12. teachers under central govt should be given qualification pay regardless of standard of schools to ensure better education to children.7th pay commission should think over this.

Leave a Reply to Aaush Kumar Cancel reply

Please enter your comment!
Please enter your name here

Just In