A big pay and pension hike that is expected to benefit 47 lakh central government employees and 53 lakh pensioners and is also expected to spur demand and act as a stimulant for the economy was cleared by the Union Cabinet on Wednesday .After taking into account dearness allowances at prevailing rate, the salary , pension of all government employees, including pensioners, will increase by at least 14.29% as on January 1, 2016 and could go up to 23% in upper brackets.
The fiscal impact of the implementation of the pay panel’s recommendation would be Rs 72,800 crore every year and in the current fiscal year, it is expected to be Rs 84,933 crore. This includes the outgo on arrears with the implementation date being January 1, 2016. The government said it has planned for the outgo.
The government approved recommendations of the Seventh Pay Commission on pay and pension but deferred proposals on allowances that will be examined by a committee headed by finance secretary Ashok Lavasa. The bill provides for wom en to be employed on night shifts with adequate security , provision of rest rooms and transportation while also listing working conditions such as drinking water, canteens, first aid, lavatory and a creche.
There is also a provision to exempt highly-skilled work exempt highly-skilled workers like those in IT and biotechnology from a daily 9hour work-day and weekly 48 working hours. However, it will be subject to maximum 125 over-time hours in a quarter. The Model Shops and Establishment (Regulation of Employment and Condition of Services) Bill 2016, proposed by the labour ministry , will not require Parliament’s approval and can be adopted by states in totality or modified as per their requirements.This means the bill is only an advisory and its implementa tion depends on states. An official said the law will help in generating more jobs.
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