Panel to study 7th Pay Commission recommendations

The government on Wednesday decided to set up a high-powered panel headed by cabinet secretary P K Sinha to process the recommendations of the 7th Pay Commission, which will affect the remuneration of 47 lakh central government employees and 52 lakh pensioners.

The cabinet has approved the setting up of an empowered committee of secretaries to process the recommendations of 7th Pay Commission in an overall perspective, parliamentary affairs minister M Venkaiah Naidu told reporters in New Delhi.

The implementation of the new pay scales is estimated to put an additional burden of Rs1.02 lakh crore on the exchequer in 2016-17. Subject to acceptance by the government, they will take effect from 1 January this year.

The empowered committee of secretaries will function as a screening committee to process the recommendations with regard to all relevant factors of the commission in an expeditious detailed and holistic fashion, an official statement said.

Finance minister Arun Jaitley had said earlier that he was not worried about the fiscal deficit and the government would be able to meet its target despite additional outgo on pay.

He had admitted however that the impact of implementing the recommendations would last for two to three years.