7th Pay Commission on its way! All you need to know about pay commissions

7th Pay Commission on its way! All you need to know about pay commissions

New Delhi, Sept 7: All the Central Government employees will soon get a big gift as Centre is planning to implement the seventh pay commission’s recommendations from January, 2016.

Recently Modi Government gave extension to the committee which was formed to fine tune the different aspects of pay commission. Seventh pay commission

Seventh pay commission

• It was formed by previous UPA Government. The commission, headed by Justice A K Mathur was formed in February 2014.
• The other members of the commission are Vivek Rae, a retired IAS officer of 1978 batch, and Rathin Roy, an economist. Meena Agarwal is Secretary of the Commission.
• The committee’s recommendations are scheduled to take effect from 1 January, 2016.
• The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications.
• Nearly 48 lakh central government employees and 55 lakh pensioners will be befitted by the pay commission.

What will be the basic salary?

• It is being said that all government employees will get around 15-16 per cent hike after it comes into effect.
• Reportedly, employees’ minimum basic salary will be increased to Rs 15, 000
• In last pay commission(6th), the minimum basic salary was increased to Rs 7730 from Rs 3050.
• Experts are having views that employees of lower rank will be benefited the most from the seventh pay commission

Financial burden

• Seventh pay commission will definitely bring a toll on the exchequer
• The reason being Government has to manage OROP’s expenditures too.
• Experts say that Central government’s salary bill will rise by 9.56% to Rs 1,00,619 crore after Seventh pay commission will come into effect
• According to Mint report, as a result of the recommendations of the Sixth Pay Commission, pay and allowances of Union government employees became more than doubled between 2007-08 and 2011-1-from Rs.74,647 crore to Rs.166,792 crore

Past pay commissions and the basic salary

• First pay commission came in year 1946 and the basic salary at that time was decided to be of Rs 35
• Second pay commission came in year 1959 and basic salary was of Rs 80
• In 1973, third pay commission came into effect which decided the basic salary of Rs 260
• Fourth pay commission came in year 1986 which recommend basic salary of Rs 960 In year 1995, fifth pay commission came, recommending basic salary of Rs 3050
• Sixth pay commission came into effect in year 2006. UPA Government at that time fixed minimum basic salary of Rs 7730

Source: http://www.oneindia.com/