7th Pay Commission latest news: Employees in dilemma, as fitment factor still remains tricky issue

7th Pay Commission: Sumitra Mahajan has announced the formation of a committee to propose revision in the pay structure and allowances of Lok Sabha and Rajya Sabha secretariats employees. The Parlaimentary committee has been formed for a pay revision of Lok Sabha and Rajya Sabha secretariat employees salaries only, as the 7th pay commission did not make recommendations about their salaries

7th Pay Commission: Payment of Gratuity (Amendment) Bill 2017 was passed in Parliament earlier this week, paving the way for doubling of the limit of tax-free gratuity to Rs 20 lakh for private sector employees. Image source: PTI

7th Pay Commission: Even as the salary hike of government employees remains a sticky issue, some sections of these employees have something to rejoice. Sumitra Mahajan has announced the formation of a committee to propose revision in the pay structure and allowances of Lok Sabha and Rajya Sabha secretariats employees. The Parlaimentary committee has been formed for a pay revision of Lok Sabha and Rajya Sabha secretariat employees salaries only, as the 7th pay commission did not make recommendations about their salaries. Murli Manohar Joshi, estimates committee chairperson, will head the six-member panel whose other members are Finance Minister Arun Jaitley and Parliamentary Affairs Minister Ananth Kumar, Public Accounts Committee Chairperson Mallikarjun Kharge, Standing Committee on Finance Chairperson M Veerappa Moily and Ram Gopal Yadav, the speaker told the Lok Sabha.

The parliamentary committee has been constituted following a consultation between Rajya Sabha Chairperson M Venkaiah Naidu and her, she was quoted as saying by PTI. "It will advise the chairman of Rajya Sabha, and the speaker of Lok Sabha on the changes that are considered desirable in structure of scales of pay, allowances, leave, pensionary benefits and other amenities to the officers and all categories of employees of Rajya Sabha and Lok Sabha secretariats," Mahajan said. Government employees who have been waiting for an announcement regarding the salary hike as per the fitment factor of 3.68 times have nothing to cheer about, as the Centre is sticking to its guns. The government wants to the fitment factor 2.57 times as recommended by the 7th Pay Commission originally. However, some government employees are threatening with an agitation.

The government this month passed another important bill that will affect lakhs of employees. Payment of Gratuity (Amendment) Bill 2017 was passed in Parliament earlier this week, paving the way for doubling of the limit of tax-free gratuity to Rs 20 lakh for private sector employees. Employees retiring in the near future can avail benefits of this benefit by as much as Rs 3 lakh in the form of tax savings. The government is empowered to fix the ceiling of the retirement benefit through an executive order. Rajya Sabha passed the bill, which was approved by Lok Sabha last week, on March 15. The central government is now enabled to fix the ceiling of tax free gratuity, besides being empowered to fix the period of maternity leave through executive order. This limit of Rs 20 lakh has already been implemented by 7th Pay Commission recommendations for government employees. The gratuity amendment bill notifies the period of maternity leave as part of continuous service and proposes to empower the central government to notify the gratuity ceiling from time to time without amending the law. Payment of Gratuity Bill ensured harmony among employees in the private and public sectors as well as autonomous organizations who are not covered under the Central Civil Services (Pension) Rules, according to a government statement.

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