Govt to defer implementation of 7th pay commission award?

Govt to defer implementation of 7th pay commission award?

New Delhi: The implementation of the recommendations of seventh pay commission may be deferred in the wake of the massive financial resource crunch faced by the government in the financial year 2016-17.
The 7th pay commission was to be implemented from Jan 1, 2016.
According to a Business Standard report, the Union Cabinet approved the formation of an empowered committee of secretaries last week to work out ways for staggering the award through more than one financial year.

“One of the options for the empowered committee was to defer the increase in allowances for central government employees, while letting the rise in pay for all scales to go through,” Business Standard quoted its Finance Ministry source as saying.
The announcement of a deferral is expected to be part of Jaitley’s Budget speech on February 29.
“The ratio of allowances to pay for these 4.7 million employees is 1:1.4. For instance, the Budget estimates in 2015-16 pegged the salary bill for all central government employees at Rs 60,731 crore, whereas the tab for allowances is Rs 84,437.4 crore,”the report quoted finance ministry figures.
In a recent television interview, Minister of State for Finance Jayant Sinha had said the Pay Commission recommendations were the biggest headache for his ministry, struggling to keep the aggregate expenditure of the Union government under control.
The 7th Pay Commission has recommended increase in remuneration of about one crore government employees and pensioners which is estimated to impose an additional burden of Rs 1.02 lakh crore in 2016-17.
Several rating agencies and brokerages have said that a proposed 23.6 per cent hike in salaries and pensions of government employees could hurt India’s finances.

Read at: India TV News

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  • The very fact that the enhanced DA/DR due to be paid from Jan 2016,is not being paid but being reckoned for fixing revised Pay/pension, shows the it will not be deferred but is being implemented.Otherwise enhanced DA/DR would have been/be ordeerd to be paid from jan .Gov cannot with-hold both revised pay/pension and enhanced DA/DR

  • Of course the pay hike of 15-23% is huge hike but 100% twice in last few years is minor expense.Now planning for 400% to match kejriwal & also few billion dollars to other country is just an Alm is onetime expense Modi has been doing to gain goodwill around the globe.Election manifesto & agenda can take back seat since those were just jumla & election strategies.When we come to power then colours are different..mind you my dear, try to understand if you haven't so far

  • MUTYA SOMAYAJULU 8 years ago

    Every employee/pensioner is feeling that appointing a committee to examine the recommendations indicates the Govt decision to postpone for sometime.

  • devinder kohli 8 years ago

    Its not jugglers game.say one thing & twist & turn
    Forget it. Just pay hanancd pensions.OROP.pay commission is doing only D.A merger.That's all.