7th Pay Commission recommendations likely this year

7th Pay Commission recommendations likely this year : Jaitley

Friday, April 24, 2015, New Delhi: The recommendations of the 7th Pay Commission on pay revision of the central government employees is expected to be submitted to the government this year, the Lok Sabha was today informed.

Responding to a supplementary, Finance Minister Arun Jaitley said, ”Additional Tencent revenue share for the state being provided by the Centre from this year and the recommendations of the pay commission- that are expected to be made this year-are bound to put additional burden on the fiscal situation.”

“Keeping this in mind, we have opted to extend the deadline from two to three years for attaining the targeted mark of fiscal budgetary deficit,” he said.

Presently, the government’s annual income is around Rs 11.5 lakh crore against the expenditure of around Rs 17.5 lakh crore leaving a budgetary deficit of about Rs 5 lakh crore.

Till date central government has notified six pay commissions before notifying seventh in February 2014. First central pay commission was notified in 1946, Second CPC in 1957, Third CPC in 1970, Fourth CPC in 1983, Fifth in 1994 and sixth in 2006.

Report of sixth pay commission was implemented w.e.f. 01.01.2006.

The UPA government formed the Seventh Pay Commission on 28 February 2014 under chairman justice Ashok Kumar Mathur with a timeline of 18 months to make its recommendations. According to present position, the commission will take at least 20-24 months.

However, the Sixth Pay Commission had submitted its report within 18 months.

As a result of the recommendations of the Sixth Pay Commission, pay and allowances of the central government employees more than doubled as per Fourteenth Finance Commission estimates.

As such,the central government employees are expected to get 100 percent salary hike under the recommendations of the Seventh Pay Commission. Issues like inflation, the governments financial

position and salary structure of government employees in other countries would also be considered as parts of pay panel recommendations.

The Fourteenth Finance Commission asked the pay panel to link the pay with productivity, which will be the biggest hurdle for central government employees to be got over to get salary hike.

It is interesting to note that the earlier governments never accepted to link the pay with productivity.

Source: [http://www.govemployees.in/7th-pay-commission-recommendations-likely-this-year-fm/]