The Shivraj Singh Chouhan-led Cabinet approved the recommendations of Seventh Pay Commission for state government employees of Madhtya Pradesh. This move will lead to 14 per cent increase in the salaries of around 6.5 lakh government staff in the state, reports suggest.
In its last meeting, the Cabinet decided to implement the recommendations of 7th Pay Commission from January 1, 2016. Arrears against the Pay Commission awards will be paid to state government employees in three installments.
Government will pay arrears of 7th Pay Commission for the time between January 1, 2016 and June 2017 in installments that will be paid in the month of May every year. The first installment will be paid in the financial year 2018-19.
The bump of 14 per cent in paychecks of state government employees will create a burden of Rs 3,828 crore on the state government. Payment of arrears for the duration till which the pay panel recommendations were delayed will put additional weight of Rs 5,742 crore on the state exchequer. For the remaining part of the ongoing financial year, the state government will have to spend another Rs 2,552 crore for implementing the recommendations of 7th Pay Commission in Madhya Pradesh.
Last week only, the Union Cabinet led by Prime Minister Narendra Modi approved the reformed allowance structure recommended by the Seventh Central Pay Commission. Central government employees had to wait for a year to see new allowance rates being implemented.
The Union Cabinet approved the allowance structure with 34 modifications and all of them were hiked except House Rent Allowance. The amount paid under HRA went up still, even though the rates were slashed on recommendations from the pay panel. The new allowances will affect 48 lakh central government employees.