7th Pay Commission: Implementation Brings Cheer to Some, Gloom For Others

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7th Pay Commission

The recommendations of the 7th Pay Commission are slated to be implemented for central government employees from as early as February 2017. This positive development has been offset by the news of lakhs of employees and pensioners of autonomous bodies under the Central government who have been informed that the revision of their salary and pension scales are expected to be delayed. The Confederation of Central Government Employees and Workers (CCGEW) has already taken up the matter with the Centre and is expected to follow up on the results and subsequent developments.

We had reported earlier that the central government intends to enhance allowances for central government employees. RBI governor Urjit Patel and a recent Bank of America (BoA) Merrill Lynch Global Research report, as cited by the IBTimes, states that with taxmen raiding super-rich defaulters and the Pradhan Mantri Garib Kalyan Yojana 2016‘s record-breaking earnings  would fetch a huge amount of money, easing the decision to implement the 7th CPC recommendations. This scheme was announced as a follow-up measure to demonetisation as readers will know. This latest scheme will penalise and deposit 25%of the undisclosed income that was not announced earlier. The penalty will also be locked in a for four years with no interest. The government thus has adequate funding to implement the CPC recommendations and enhance the allowances of 47 lakh Central government employees and 53 lakh pensioners of which 14 lakh employees and 18 lakh pensioners are from the armed forces.

The same government has apparently turned a blind eye to the employees and pensioners of autonomous bodies under them. CCGEW president KKN Kutty was quoted saying that the confederation had taken up the issue with the central government and had stated that if the government delayed, people at the lowest ranks would be deprived of their dues. The General Financial Rules of the Central government call for reviews of autonomous bodies. Implementing the CPC recommendations may lead to the amalgamation of certain bodies and even closure. This may lead to further delays in implementation.

The 7th Pay Commission submitted its report in November 2015 and asked for enhanced benefits. The commission has met regularly since then and has sought to iron out differences between the central and the state governments over the allocation of funds. Arunachal Pradesh has already announced the implementation of the recommendations, as we reported. Any action taken by the government will be watched closely and will be reported here.

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