New Delhi: This give a great pleasure to central government employees, with the government is likely to modify the pay package of its employees, they can expect a higher package from next year. The coming revised pay will be higher than what the Seventh Pay Commission recommended.
The Seventh Pay Commission increased 16 per cent pay hike, which is significantly lower than what the Sixth pay commission had recommended which was close to a 40 percent increase in salaries. The extent of increase is actually on the lower side of expectations.
The Seventh Pay Commission report for pay package hiking submitted to the Finance Minister Arun Jaitley on November 19. However, the central government employees are in for disappointment as the report has been proposed a 16 percent hike in pay package starting January 1, 2016.
We understand from sources of Finance Ministry that the average increase in basic pay for all government employees will be in the region of 20-24%. This is a very rough average because for low paid employees, the payback could increase by more than 26%.
We understand that minimum basic salary is likely to hike at least Rs 20,000 from Rs 18,000 recommended by the Seventh pay commission.
We also understand from sources, in good news for about 50 lakh central government employees, the the government is likely to approve doubling of existing rates of allowances and advances, which has been recommended for abolition by Seventh Pay Commission like risk allowance, small family allowance, festival advance, motor cycle advance.
It is also added that the central government employees at various levels have been complaining of the abolition of the above allowances and advances.
They also demanded to make up pay gap between employees and higher officers because in its report, the Seventh Pay Commission has recommended to increase the pay gap between the minimum and maximum from existing 1:12 to 1: 13.8, while all pay panels from second to sixth made up pay gap from 1:41 to 1:12.