New Delhi: The Seventh Pay Commission recommendations are likely to be
come into effect from April 1 as the country entered a new fiscal year.
The reports of Seventh Central Pay Commission will be implicated from
April next year as Finance Minister Arun Jaitley said in the Parliament
on February 27.
The Seventh Pay Commission plans to submit its recommendations on a new
pay and pension structure for the country’s 48 lakh central government
employees and 55 lakh pensioners’ up to December 31.
Justice A K Mathur, chairman of the 4-member commission, said they are
aiming for the date so that the government employees can get salaries
under the new pay scale from the upcoming fiscal year.
However, they were ready to submit its report by the end of September
but government gave nod to submit its report till December 31.
“The commission would work to keep inflation in check, as a salary
increase is invariably accompanied by a rise in the price level,” an
official of the commission said, speaking on condition of anonymity.
The commission is exploring whether it would be possible to increase
financial limitation of various facilities to the central government
employees in place of existence allowances, he said.
For instance, the commission is considering whether it would be possible
to increase education allowance facilities from school children to
college boys/girls upto 25 years.
Presently the Education allowance is admissible for two children, for
studying upto XII standard. The maximum ceiling is stipulated at
Rs.18000/- since this allowance had been hiked by 50% because of the DA
component in salary having been crossed 100% on 1.1.2014.
He also said they are also considering whether to recommend increasing
Central Government Employees’ Group Insurance Scheme (CGEGIS) up to
minimum sum assured amount to Rs 5 Lakh in the event of death. Now, the
maximum sum assured in the event of death in this scheme is Rs.30
thousand.
The commission is also mulling to recommend more cities to cover Central
government Health Scheme (CGHS) from existing 25 cities for better
health facilities for central governments employees and pensioners.
Sources said the commission would recommend formation of a fund where a
staff will deposit some money towards a flat after retirement at the
start of his job; the government will also contribute towards it.
The Commission, which was set up by the UPA government in February 2014
to revise remuneration of central government employees, Defence
personnel and pensioners, was required to submit its report by
August-end.
The government on Wednesday extended by four months the term of the Seventh Pay Commission, The Commission will now have time until December 31 to submit its report.