Jul 14, 2017

No pay commission, govt to mull raises each year

New Delhi: The government is considering adjusting salaries of its its 4.8 million employees and 5.2 million pensioners every year after taking inflation into account, according to Finance Ministry officials involved with the process of pay commission told The Sen Times on condition of anonymity.

They said government is likely to want to take decisions on raising central government employees’ salaries and allowances each year.

They added that the government’s objective is to keep central government employees salaries in balance with prices in the market.

“For this, in future, government won’t appoint pay commissions every ten year,” they confirmed.

From now on, department of expenditure will be responsible to regularly monitor salaries and allowances of central government employees and consider salary and allowance disparities in the service.

The officials said that the department of expenditure will also investigate inflation rates and will submit a report to the Finance Minister Arun Jaitley annually.

The salaries and allowance of the central government employees can be adjusted in time after reviewing the report from the department of expenditure, they also added.

“This is a significant change and therefore the government should hold detailed discussions on the issue,” they also told us.

The government hiked the salaries for the central government employees from August 2016. They also got arrears from January 2016 on the recommendations of the 7th Pay Commission.

While the government increased allowances on June 28, which comes into effect from July 1, 2017, which made resentment among the central government employees.