Seventh Pay Commission’s report to be implemented ahead of states elections in May : TST

September 11, 2015

New Delhi: Ahead of the states’ assembly elections in May’ 2016, the Central government may implement the recommendations of the Seventh Pay Commission after receiving the report of the pay panel within this year, which will benefit 50 lakh central government employees and 56 lakh pensioners including dependents.
“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.

Just like one rank one pension (OROP) was announced by Modi government on 5th of this month ahead of Bihar Assembly election despite huge financial burden to get majority seats of his party in Bihar Assembly.

OROP announcement not only is pre-election BJP’s special package but also Union cabinet approved six percent increase in DA for central government employees on Wednesday, making the total to 119 percent, on a day the Election Commission announced poll dates for Bihar is a move that would benefit the BJP in Bihar Assembly Election.

Accordingly, JD (U) leader K C Tyagi said, “The Modi government gave a ‘political bribe’ to voters. I welcome the DA hike for central government employees, but, I feel the, timing of the announcement is not correct.”

BJP needs to win most state elections in the next four years to gain control of the Rajya Sabha, where seats are distributed based on the strength of parties in state assemblies.

A defeat for Prime Minister Narendra Modi would harm his chances of consolidating power in parliament, where his reform agenda is being blocked because his party is in the minority in the Rajya Sabha.

So, Modi led BJP government is ready to give any sop to win states assemblies electons.

Finance Minister Arun Jaitley said on August 30, that report of Seventh Pay Commission for central government employees was coming shortly.

However, Chairman of the Seventh Pay Commission, Justice Ashok Kumar Mathur told PTI on August 25, “The Commission will submit its report by the end of September.”

Now, it is expected that recommendations of Seventh Pay Commission, will be implemented before the announcement of West Bengal, Assam, Kerala and Tamil Nadu states assemblies’ election in May 2016.

The Seventh Pay Commission, which was set up by the UPA government, was required to submit its report by August-end.The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications.

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.

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.