7th Pay Commission: No voice raised for fitment factor hike, but this is what these government employees will get
7th Pay Commission: The decision was taken by by Chief Minister Mehbooba Mufti headed state cabinet. The government also claimed that Jammu and Kashmir has thereby become the first state in India to implement the 7th pay commission report.
7th Pay Commission: The order for implementation of the seventh pay commission recommendations for government employees and pensioners of the Jammu and Kashmir government has been given by the Cabinet. This is great news for the staff. Over 500,000 state government employees and pensioners will benefit from CM Mehbooba Mufti's order to implement the pay panel report.
The good news stretches to the fact that the order will be implemented with effect from January, 2016.
The 7th Pay Commission based revised pay scale that employees will now get means their salaries will be hiked by over 20 per cent hike for the month of April.
However, in what could become a matter of concern for the future, this step is going to put an extra burden of Rs 4,201 crore per year and Rs 7,477 crore in one-time arrears on the Jammu and Kashmir exchequer.
The decision was taken by by Chief Minister Mehbooba Mufti headed state cabinet. The government also claimed that Jammu and Kashmir has thereby become the first state in India to implement the 7th pay commission report.
Significantly, Jammu and Kashmir government employees' salary for April 2018 will be as per the 7th CPC revised scales.
As per 7th Pay Commission recommendations, basic pay as on December 31, 2015, of employees shall be multiplied by a fitment factor of 2.57 and then adjusted in the matrix recommended.
Other benefits under 7th CPC like revised House Rent Allowance shall be available from April, 2018 and all allowances except Dearness Allowance (DA) shall continue as before.
Gratuity too shall be enhanced from the existing ceiling of Rs 10 lakh to Rs 20 lakh with effect from January 1, 2016, with increase in the ceiling on gratuity by 25 per cent whenever DA rises by 50 per cent as recommended by 7th pay commission.
Pensioners will offered the chance to opt for revision of pension by any of the two formulations suggested by the Pay Committee. Arrears of pensioners shall be paid in cash in three six monthly instalments while arrears of all employees shall be drawn and credited to their G.P Fund accounts with moratorium of 3 years for withdrawal of same.
However, employees of PSUs and autonomous organisations were left a bit disheartened as the implementation of 7th pay commission recommendations will depend on the availability of resources with these organisations.
While all of this is good news for the state government employees, no voice is as yet being raised that the fitment factor should be higher than the 2.57 times recommended by the report. Significantly, central government employees want their salaries to be hiked by a fitment factor of 3.68 times, which the
Centre is as yet mum on. In its reaction a few months ago, it had denied that any such issue was pending with it. Employees say inflation eats into their incomes in a significant manner.