No annual increment for non-performing employees

The finance ministry on Monday notified higher salaries for Central government employees in line with the 7th Pay Commission’s recommendation – a move that will benefit almost 1 crore staffers and pensioners, and cost the exchequer an additional Rs 1.02 lakh crore annually.

The Union Cabinet had on June 29 cleared the proposals of the Pay Panel for salaries and pensions while deferring a decision on allowances.

As per the approval, the basic monthly salary is Rs 18000, and maximum pay is Rs 2, 50,000. However, the decision on 7th Pay Commission suggestions relating to allowances has been referred to a Committee headed by Finance Secretary. The government has also decided on two windows for grant of increment (January 1 and July 1), instead of the existing single window (July 1). A fitment factor of 2.57 would apply for pay revision of all employees and the rate of annual increment has been retained at three per cent.

“In order to enhance the income of other categories of workers, both central and state governments are required to fix, review and revise the minimum wages of the workers employed in scheduled employment under their respective jurisdictions at an interval not exceeding five years”.

Fitment Factor, Index of Rationalisation, Pay Matrices and general recommendations on pay without any material adjustment with the following exceptions in Defence Pay Matrix in order to maintain parity in pay with Central Armed Police Forces.

The minimum pay in central government with effect from January 1, 2016 will now be Rs 18,000 per month; at the highest level, it will be Rs 2.5 lakh.

Central government employees are now busy counting their new salaries under the new pay matrix along with the hard cash they will receive ahead of Dussehra as arrears from January 2016.

The pay hike will have a fiscal implication of Rs 1.02 lakh crore or 0.65 per cent of GDP in the first year of implementation.

These included Telecom Regulatory Authority of India, Central Electricity Regulatory Commission, Insurance Regulatory and Development Authority, Securities and Exchange Board of India, Competition Commission of India, Pension Fund Regulatory and Development Authority, Petroleum and Natural Gas Regulatory Board, Warehousing Development and Regulatory Authority, and Airports Economic Regulatory Authority of India. The Committee will submit its report within four months.

The members of these regulators would get consolidated pay package of Rs 4 lakh a month.