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With the government by and large endorsing the recommendations of the Seventh Pay Commission, Vivek Rae, member of the commission, believes that this is definitely a positive step forward.
The government has accepted a minimum pay of ₹18,000 recommended against the existing ₹7,000 per month.
While there have been certain recommendations like allowances, insurance, and issues where the Commission could not have consensus have been referred to a committee or respective Ministries to decide upon, the government did accept the new Pay Matrix as recommended by the Commission. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same. In a quick chat with BusinessLine, from Nepal, Rae shares his thoughts. Excerpts:
The recommendation on allowances by the Commission has not been accepted by the government. How do you see it?
We had examined almost 196 allowances and recommended ways of rationalisation — abolition of some, while subsuming others. Since it would have had wide ranging implications, the government has in all fairness decided to constitute a committee for further examination of the recommendations. Besides, the committee has also been asked to complete its work in a time- bound manner. Till then, the existing rates will continue. I think this is the right approach.
The Cabinet has not accepted the insurance proposal under Central Government Employees Group Insurance Scheme made by the Commission…
This is understandable as the employees would have ended up paying more from their salaries. The Finance Ministry will be working out a mechanism. Till then, the status quo will continue.
Although the National Pension System (NPS) was not part the Commission’s terms of reference, the Commission has commented on it…
Yes, it was based on concerns raised by certain stakeholders. Since it was not our mandate, the government has formed a committee to look into it.
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