After DA, central govt employees now in wait for 7th Pay Commission award

After DA, central govt employees now in wait for 7th Pay Commission award

New Delhi: After the government on Thursday notified its decision to raise Dearness Allowance (DA) to 125 per cent from 119 per cent, benefiting its 48 lakh central government employees and 52 lakh pensioners, in a bid to ease the inflationary pressure.

All eyes of central government employees are now on government, which will take a final decision in 7th Pay Commission award.

The increasing of Dearness Allowance (DA) of central government employees and officials were not helpful for maintaining their living standard, Finance Ministry’s official said on Thursday.

They also said the 7th Pay Commission award should implement which would give them some financial comfort, a step they had hoped might be taken within the next two months.

Sources in the Prime Minister’s Office (PMO) said the central government may make a formal announcement on 7th Pay Commission award when model code of conduct over, which is currently in place for five states assemblies’ poll.

They also said the Finance Minister Arun Jaitley had initially appointed an Empowered Committee of Secretaries (CoS) headed by Cabinet Secretary P K Sinha for processing the report of the Seventh Pay Commission before cabinet nod, the Seventh Pay Commission recommended 14.27 per cent increase in basic pay to central government employees cope with the inflation but it was the lowest increase in 70 years.

The previous commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

The Pay Commission also recommended overall increase in salary, allowances and pensions 23.55 per cent. They proposed to increase in allowances by 63 per cent while pensions will rise 24 percent.

This will cost the exchequer Rs 1.02 lakh crore.

The central government plans to raise the minimum pay of central government employees from Rs 18,000, which was recommended by Seventh Pay Commission.

Central government employees unions demanded minimum pay Rs 26,000. They also told The Sen Times the government’s delay in announcing the 7th Pay Commission award has created resentment among the employees.

“The Finance Minister Arun Jaitley promised us that the government will announce the 7th Pay Commission award soon,” they said.

The government has kept budget allocation in the current fiscal’s budget to meet the 7th Pay Commission award which will require the government to spend Rs 70,000 crore during 2016-17 fiscal in addition to regular salary.