7th Central Pay Commission likely to submit its final report on November 20

 

NEW DELHI: The 7th Central Pay Commission is likely to submit its final report to finance ministry on November 20 which is due for implementation from January 1, 2016.

More than 48 lakh serving central government employees and 54 lakh pensioners will be impacted by the 7th CPC which is likely to recommend an average hike of 15%, said a source.

The 900-page report is believed to have made suggestions on parity of 36 organized Group A services with the IAS which has so far largely dominated in superior positions in the central government.

The pay panel was constituted in February 2014 and was asked to submit its report within 18 months. However, in August the government gave the panel four months extension to submit its report by December.

Its recommendation will guide how the salary and various allowances of central staff will be revised besides improving their service condition. The report would also impact all the public sector employees and central autonomous bodies which generally make corrections as per the hikes given to the central staff.

Even before the report was finalized there was intense lobbying seen where all the 36 organised Group A services petitioned the commission seeking parity with the IAS and determination of central postings based on merit.

The IAS officers too had sent their individual dissention notes to department of personnel and training and the cabinet secretariat besides the pay panel demanding that their edge and superiority be maintained.

One of the demands of the Group A services is to change the composition of the Civil Services Board which is responsible for central staffing. As of now this is dominated by IAS officers and has no representation from any other service. The pay panel may recommend changes that would ensure level playing field for all officers of Group A services.

According to sources, the recommendations of the 7th Pay Commission will be submitted to the finance minister on Thursday. The 7th Pay Commission is unlikely to suggest changes in the retirement age of central government employees, sources said.

Central government employees and pensioners are likely to be disappointed as the 7th Pay Commission is expected to propose an approximate 15 per cent hike in salaries starting January 1, 2016, sources told NDTV.

The recommendation, which will become effective after a Cabinet nod, will impact 50 lakh central government employees and 54 lakh pensioners.

The 15 per cent salary hike likely to be recommended by the 7th Pay Commission will be much lower than the 35 per cent hike employees got on implementation of the 6th Pay Commission in 2008.

A 15 per cent salary increase would push up the central government's salary bill byRs. 25,000 crore, which is 0.2 per cent of India's GDP, according to Bank of America Merrill Lynch estimates.

Economists expect the wage hikes to boost the consumption-driven recovery in the domestic economy. Sales of affordable homes and consumer durables such as cars, two-wheelers and other electronic items are likely to pick up, analysts say.

On the flip side, salary hikes are also expected to stoke inflation and fiscal pressures, economists say.



2) UNI Global Union condemns vile terror attacks.

UNI Global Union and our family of 1000 unions in over 150 nations, sends its sympathy and condolences to France and all countries whose citizens were murdered and injured during the vile terrorist attacks in Paris.

UNI Global Union’s General Secretary, Philip Jennings said, “We condemn these acts of terror and mourn this tragic loss of life in Paris. We also remember the victims of the terror attacks in Beirut, Sinai, Tunisia and last month in Ankara.

“The perpetrators and those behind these acts of terrorism intend to divide us, to make us question our confidences in democracy and in the attainment of peace. Our humanity to one another unites us in the face of these barbarous acts.  We mourn this terrible loss of human life and stand together in our condemnation of those responsible.”

The UNI Global Union General Secretary has sent messages of condolences to all the affiliates affected and UNI has joined in the minute’s silence held today to remember the victims.