On June 28, 2017, the government approved the recommendations of the 7th central pay commission on allowances with 34 modifications, which will benefit 48 lakh central government employees.
The increased allowance, which comes into effect from July 1, will impose an additional annual burden of Rs 30,748 crore on the exchequer.
The modification, which is based on the recommendations of committee on allowances, will result in additional burden of Rs 1,448 crore over and above suggestions made by 7th Central Pay Commission.
The fitment committee constituted by the state government to recommend modalities for implementation of the 7 th pay commission for its employees and pensioners sought 45 more days to submit its report.
"The fitment committee is trying to build consensus about the representations made by different employee unions; so that all discrepancies can be avoided in implementing the 7 th pay commission. We have decided to seek some more time to submit the report," development commissioner, R Balakrishnan, who is the chairman of the committee, told reporter after the meeting.
The committee that was constituted in October, 2016 was supposed to submit its report on February 28, which was extended by two more months (till April 28). According to sources, the state government is likely to implement the pay commission recommendations before Dasahara.
The employee' unions of the state government are eagerly waiting for implementation of the 7 th pay commission. Nearly 4 lakh employees and more than 2 lakh pensioners are going to benefit from any hike.
Though there was no specific allocation in the 2017-18 annual budget for the 7 th pay commission implementation, it had earmarked Rs 47,466 crore towards administrative expenditure that includes salary and pension.
Sources in the finance department said that the state government would have an additional financial burden of Rs 5,000 crore for implementation of the pay commission recommendations.
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