Jan 29, 2016

Seventh Pay Commission: Cabinet-approved screening committee to review sops granted to 47 lakh employees

New Delhi,: Seventh Pay Commission had submitted its report before the Centre in November, recommending a hike of 23.55 per cent in salaries granted to Central Government employees, along with an equal increment for the staffers who are eligible for pensions. The report of the Commission positively impacts the salary seekers and pensioners, but it also ends up creating an annual burden of Rs 1.02 lakh crore on the public exchequer. On recommendations of the Cabinet, Government has formed a 13 member Committee of Secretaries (CoS) will review the sops granted to employees and analyse their feasibility and impact on the exchequer.

The empowered screening committee will include secretaries from ministries of Home Affairs and Defence, Department of Personnel and Training, Pension and PW, Revenue, Expenditure, Health, and Science and Technology. Chairman of Railway Board, Deputy CAG and Secretary (Security) re also included in the panel. 

The setting up of screening committee was necessitated since the recommendations made by the Commission appears populist and fails to undertake the adverse impact it imposes on country’s economy. Increasing remuneration to 52 lakh pensioners, more than the active workforce and scaling up the minimum salary to Rs 18,000 are some of the proposals which have positivity among the beneficiaries, but lacks practicability from financial perspective.

At least five states reeling under fiscal strain – Punjab, West Bengal, Odisha, Tamil Nadu and Uttar Pradesh have sought the extension of January 1 deadline from the Centre to implement the recommendations of the Pay Commission. States are supposed to replicate the same model of payment to its governmental employees and pensioners as the Pay Commission recommends for their Union counterparts.

SOURCE - india.com