7th Pay Commission to submit report tomorrow; may propose 15% average hike: Media reports

THE much-awaited 7th Central Pay Commission (CPC) is likely to submit its final report to finance ministry tomorrow that is November 20. The report will be implemented from January 1, 2016. Over 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 percent, say media reports. The 900-page report is understood to have made suggestions on parity of 36...
organised 'Group A' services with the IAS, which has so far largely dominated superior positions in the central government.
The Seventh Pay Commission's recommendations will be implemented from January 1, 2016. The Department of Personnel and Training will examine the recommendations and consult the Finance Ministry on them. Its term was extended by four months till December 31 to give its recommendations on revising emoluments for nearly 48 lakh central government employees and 55 lakh pensioners.
The commission, whose recommendations may also have a bearing on the salaries of the state government staff, was given more time by the Union Cabinet just a day before its original 18-month term was to end.
Headed by Justice AK Mathur, the Commission was appointed by the previous UPA government in February 2014.
Earlier in August this year, the government had extended Commission's term by another four months till December 31 to give recommendations.
The Commission, whose recommendations may also have a bearing on the salaries of the state government staff, was given additional time by the Union Cabinet just a day before its original 18-month term was coming to an end.
The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its staff. As part of the exercise, the Commission holds discussions with various stakeholders, including PSUs, organisations, federations, groups representing civil employees as well as defence services.
The Sixth Pay Commission was implemented with effect from January 1, 2006, the fifth from January 1, 1996 and the fourth from January 1, 1986.
Set up by the UPA government in February 2014, the 7th Central Pay Commission was to make its recommendations within 18 months. Its term would have expired on August 27.
The recommendations of the 7th Pay Commission— slated to come into effect from January 1, 2016, would impact around 48 lakh central government employees and 55 lakh pensioners.
The commission may also raise hopes for tens of millions of salaried PSU employees.
Under the Terms of Reference, the Commission had to take into account, among other factors, the prevailing pay structure and retirement benefits available under the CPSEs.
The Sixth Pay Commission made certain recommendations on pay scales and allowances keeping in view the concepts which are in existence in PSUs such as percentage based increments, introduction of performance related incentives, interest subsidy on loans, voluntary retirement schemes, among others.
The Sixth Pay Commission observed that the issue of comparison with the public sector has necessarily to be examined as the PSUs needed to function in a competitive environment and have the commercial objective as the predominant objective. A comparison of salaries between the public sector and the Government may not be appropriate as it would not be a comparison between similarly placed entities.
The Sixth Pay Commission studied the mechanism by which the salaries of employees of public sector undertakings are determined and the conditions that govern them with the aim of examining if any comparison could be drawn.