The much awaited 7th Central Pay Commission is likely to submit its final report to the Union Finance Ministry on November 20.
The decision, if implemented, will be effective from January 1, 2016 and nearly 40 lakh serving Central government employees and more than 55 lakh pensioners will be benefited. The hike is expected to be around 15 per cent and is expected to add additional burden in the national coffers.
Already new defence pension scheme – One Rank One Pension (OROP) – has increased the recurrent expenditure by 0.06 per cent of GDP. Now with the implementation of the 7th Central Pay Commission, it is a concern that this will coincide with a rise in recurrent expenditure of the government.
The commission in its 900-page report has reportedly suggested equality to employees working in organised Group ‘A’ services as compared to the IAS fraternity. It was learnt that the thought for equality came because for years IAS lobby dominates most of the prime positions in the central ministries.
There was a call from other organised Group ‘A’ service’s sectors for equality in central postings and if it actually happens then it will be a boon for them. In February 2014, the pay panel was constituted and it was asked to submit its report within 18 months. Due to official wrangling the government extended the deadline and asked the panel to submit its report by December 2015.
Some of the areas, which will be highlighted in the report, are how the salary and allowances will be revised based on designation.