First One rank one Pension then pay commission – Sources

New Delhi: The Seventh Pay Commission award becomes boon for central government employees, is not going to be implemented before the implementation of One Rank One Pension (OROP).

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According to a Finance Ministry official concerned, the Empowered Committee of Secretaries (CoS) for processing the report of the Seventh Central Pay Commission, is taking time to let the notification of One Rank One Pension (OROP) be executed first.

He added the notification of One Rank One Pension (OROP) was issued on November 08, while notification of the Seventh Pay Commission yet to be issued and ex-servicemen are pressing hard to implement OROP with some modifications.

Accordingly, the Seventh Pay Commission recommendations will not be implemented until One Rank One Pension (OROP) is implemented.

“The Empowered Committee of Secretaries (CoS) will sit soon to talk about review of the Seventh Pay Commission recommendations,” the official added.

Besides, hike minimum pay From Rs 18,000, rejection of Pay Commission’s recommendation for abolition of some allowances and advances and amendment to service rules is required, the official said. “For this reason also, time is needed.”

Finance Ministry sources said if the government followed the Seventh Pay Commission’s salaries and allowances revision proposals, expenditures would rise Rs 1.02 lakh crore in 2016.

Finance Minister Arun Jaitley had earlier said financing the additional amount would not be a problem to implement the Seventh Pay Commission award.

The thirteen-member Empowered Committee of Secretaries (CoS), led by Cabinet Secretary P K Sinha, was formed on Wednesday.

The twelve other members of the committee are the Finance Secretary, DoPT Secretary, Pension Secretary, Home Secretary, Defence Secretary, Revenue Secretary, Posts Secretary, Health Secretary, Science & Technology Secretary, Railway Board Chairman, Deputy Comptroller & Auditor General and Secretary (Security), Cabinet Secretariat.

In addition to reviewing the pay hike proposals for central government employees, the Empowered Committee of Secretaries will also looking after the pay hikes for the armed forces.

The Seventh Pay Commission, led by Justice A K Mathur submitted its proposals to the Finance Minister Arun Jaitley on November 19 last year, recommending 23.55 per cent pay hike of central government employees, health insurance insurance scheme for staff and pensioners and doubling the gratuity ceiling to Rs 20 lakh.

The highest salary of Rs 2.5 lakh was recommended for the cabinet secretary; currently his basic monthly pay is Rs 90,000.

The government plans to implement the hikes pay from January this year. The Seventh Pay Commission was set up by the UPA government in February 2014.

Currently, there are over 48 Lakh central government employees and 52 lakh pensioners.