7th Pay Commission: Revised Payments and Allowances Won’t Directly Affect Autonomous Bodies

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The Finance Ministry has clarified in a recent memorandum that the pay scale revisions in accordance with the recommendations of the 7th Pay Commission will not directly apply to the country’s autonomous organisations and has gone on to state that the revision in pay scales of employees of such institutions will be revised to reflect a minimal burden on the exchequer. Autonomous institutions are not controlled by the Union government and have been known to function independently.

The Finance Ministry stated that revised pay scales in accordance with the 7th Pay Commission’s recommendations shall not be automatically applicable to employees of autonomous institutions

In an official memorandum mentioned here, the ministry stated,”The autonomous organisations are expected to manage their affairs in such a fashion that their dependence on the central government for financial support to meet the extra financial implications is minimal as such autonomous organisations are expected to be financially self-sufficient so as not to cause any extra burden on the central exchequer.” The ministrywent on to add that while the implementation of the revised pay scales was paramount, the financial advisors of the government will also ensure that the extent of the government’s support will be kept to a minimum. The government’s support shall be more than 70 per cent of the additional financial impact that the implementation of the 7th Pay Commission entails. The memorandum also concluded that the revised pay scales shall not be automatically applicable to the employees of these autonomous organisations.

The decision comes in the wake of the Khadi board’s decision to put the image of the Prime Minister on its annual calendar and diary replacing the image of Mahatma Gandhi. The Khadi board is a body under theKhadi and Village Industries Commission which is an autonomous institution. There was widespread criticism of the decision and the government was accused of impinging on the autonomy of the institution. The administrative agencies and the ministries concerned will ensure that the pay scales are justified based on functional considerations and recruitment qualifications. The federation of railway employees had recently written to the PM to ensure swift implementation of the commission’s recommendations, as we reported earlier.


Responding to concerns over such autonomous institutions which are unable to bear the financial impact of the implementation of the 7th Pay Commission’s recommendations, the memorandum added that these issues would have to be solved through consultation with the respective financial advisors. Finally, the memorandum added that no decision has been taken so far with regard to various allowances based on the pay commission recommendations for central government employees. This will almost certainly impact the future of the employees and the pensioners of the central government.

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