The pay panel may definitely bring toll on the exchequer as government has to manage expenditures of One Rank One Pension (OROP) for ex-sevicemen before Seventh pay commission expenditures.
The Seventh Pay Commission is likely to offer realistic view on increase of salaries and allowances of central government employees.
It is expected that the central government’s salary bill will rise by 9.56% to Rs 1,00,619 crore after Seventh pay commission will come into effect.
This OROP announcement will have a significant impact on Seventh pay commission report badly, especially in salary hike and increasing allowances,” said a pay panel official.
“We have to look financial health of government before submitting our report. We have to save financial position of government to run the nation smoothly. We are not only to work for pay hike.” he added.
However, the recommendations of Seventh Pay Commission, may be implemented by NDA government before the announcement of West Bengal, Assam, Kerala and Tamil Nadu states assemblies’ election in May 2016.
“The central government will decide execution time of the pay commission’s proposals after the pay panel submits its report, which will be possible pre-election “special packages” for West Bengal, Assam, Kerala and Tamil Nadu, which are all due for polls by May 2016,” an official of the Finance Ministry said, speaking on condition of anonymity.
The Seventh Pay Commission is likely to submit its report in December. The Commission has already completed discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services and is in the process of finalising its recommendations.
The recommendations of the Seventh Pay Commission are scheduled to come into effect from January 1, 2016.
