7th Pay Commission

Posted Friday November 20, 2015 by Subhash Chandra Agrawal


It refers to report of seventh Pay Commission as presented to Union Finance Minister by its chairperson on 19.11.2015. Important feature is that its recommendations are to be implemented from a coming date of 01.01.2016 unlike on previous occasions when recommendations were usually kept deferring for years and arrears had to be paid for several years resulting in sudden price-rise because of a very heavy amount suddenly induced in the market because of payment of such arrears.

 Seventh Pay Commission has also stepped in right direction to abolish many types of allowances and tax-free loans, but being liberal on increasing housing-loan amount to rupees 25 lakhs on payment of interest. Step will give boost to housing-sector which alone can revive economy. Central (and also state) government/s should step further by discontinuing practice of developing residential-accommodations for government-employees. It is much costlier for governments to develop housing-units. Just a part of interest on such investment can be more than sufficient to pay House-Rent-Allowance (HRA). It will be beneficial for government-employees too when they would be able to better utilize HRA for paying Equated Monthly Installments (EMIs) for purchase of their own residential-unit which will be beneficial for them even after their retirement from government-service. To encourage public-transport, system of car-loans by banks (both private and public-sector) should be abolished at least for costlier and big cars.

Governments should also replace all types of medical-reimbursements at government-expense even for those in legislature and judiciary by Medi-Claim policies for families of those entitled. However those posted at high posts may be initially entitled for priority treatment at government hospitals/dispensaries in personal chambers of senior doctors to avoid practical resistance of decision-takers for sudden abolishing of such a princely facility. Till such decision is taken, it should be legislated to compulsory put on website annual medical-reimbursements claimed at government-expense to check misuse. It becomes necessary in view of Supreme Court dismissing CIC-verdict allowing disclosure of annual medical-reimbursement of individual judges. It is noted that medical allowance claimed by a member of fourth Delhi Legislative Assembly Vipin Sharma till October 2013 was rupees 13193055.

Employee-unions have rightly demanded to reduce gap between highest and lowest salaries of government-staff. It is simply illogical that some ones in regulatory bodies may be getting salaries of tune of 4.5 lakhs per month as against highest 2.5 lakh rupees payable to senior-most bureaucrat. Future Pay Commissions should also decide for pay/perk/allowances of Parliamentarians.

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