Lok Sabha question - Is 7th CPC report,burden on exchequer

-

7th Pay Commission Report, Burden On Finance/Exchequer, Productivity Linked Pay Hike And Any Alternative Of Future Pay Commission

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA

UNSTARRED QUESTION NO: 1652
ANSWERED ON: 27.07.2018

Pay Commission Reports
RAJENDRA AGRAWAL
Will the Minister of FINANCE be pleased to state:-

(a) whether the reports of successive Pay Commissions have been increasing the burden on Government finances/exchequer in partially accepting their recommendations for increase in wages and if so, the details thereof;

(b) whether the last Pay Commission has suggested productivity linked pay hike to the deserving employees to eliminate below average or mediocre performance and if so, the details thereof;

(c) whether such periodic hikes in wages resulting from Pay Commission recommendations trigger similar demands from the State Government/public utility employees, imposing burden on already strained State finances and if so, the details thereof; and

(d) whether the Government is considering an alternative for increasing the salaries and allowances of Central Government employees and pensioners in future instead of forming Pay Commission and if so, the details thereof?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI P. RADHAKRISHNAN)

(a) The financial impact of the recommendations of the Central Pay Commission, as accepted by the Government, is normally pronounced in the initial year and gradually it tapers off as the growth in the economy picks up and fiscal space is widened. While implementing the recommendations of the last Central Pay Commission, i.e., the Seventh Central Pay Commission, the Government staggered its implementation in two financial years. While the recommendations on pay and pension were implemented with effect from 01.01.2016, the recommendations in respect of allowances after an examination by a Committee have been implemented with effect from 01.07.2017. This has moderated the financial impact of the recommendations. Moreover, unlike the previous 6th Pay Commission, which entailed substantial impact on account of arrears, the impact in the year 2016-17 on account of element of arrears of revised pay and pension on the present occasion of the 7th Central Pay Commission pertained to only 2 months of the previous financial year of 2015-16.

(b) The Seventh Central Pay Commission in Para 5.1.46 of its Report proposed withholding of annual increment in the case of those employees who are not able to meet the benchmark either for Modified Assured Career Progression (MACP) or regular promotion within the first 20 years of their service.

(c) The service conditions of employees of State Governments fall within the exclusive domain of the respective State Governments who are federally independent of the Central Government. Therefore, the concerned State Governments have to independently take a view in the matter.

(d) No such proposal is under consideration of the Government.

Comments

Post a Comment

Popular posts from this blog

Approval of the Government of India for extending the benefits of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) to all senior citizens aged 70 years and above.National Health Authority L.S. CHANGSAN (I.A.S.) Chief Executive Officer D. O. No. S-12018/395/2022-NHA 20th September, 2024

-
Image
  National Health Authority This is to inform you of the approval of the Government of India for extending the benefits of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) to all senior citizens aged 70 years and above. 2. Salient features of the approval are as below: a. The benefits of AB PM-JAY would now be available to all senior citizens of the age 70 years and above irrespective of their socio-economic status. These benefits will be available to senior citizens of 70 years and above in families already covered under AB PM-JAY (hereinafter referred to as ‘existing families’), as well as in families which are not covered under the AB PM-JAY, (hereinafter referred to as ‘new families’). b. The only eligibility criteria for availing benefits under the scheme would be attainment of age of 70 years or above by the individual. This would be determined on the basis of age recorded in Aadhaar. As per prevailing practice, Aadhaar would be the only document requi
Read more

GREAT HOPE : Grant of notional increment to govt servants Superanuated on 30th june or 31st December-reg dated 26th June 2023

-
Image
  Grant of notional increment to Govt servants superannuated on 30th June or 31st December – Further action will be taken on completion of the consultation process: DoP&T 19/1/2023PersPolicy[Pay(Promotion)] 1/3026765/2023 19/1/2023 Pers Policy [Pay (Promotion)] Government of India Ministry of Personnel, Public Grievances and Pensions Department of Personnel & Training North Block, New Delhi Dated June, 2023 To Shri Ramsahay Vijay Email: rsvijayvargia[at]gmail.com Subject: Grant of notional increment to Govt servants superannuated on 30th June or 31st December-reg Sir, I am directed to refer to your email dated 06.06.2023 in the matter involving grant of notional increment to the Central Government employees who superannuated on 30th June or 31st December in light of the Order of Hon’ble Supreme Court dated 11.04.2023 in the case of KPTCL v/s C.P. Mundinmanian and dismissal of SLP No.4722/2021 filed by UOI in order dated 19.05.2023. 2. In this regard it is informed that action i
Read more