Odisha 7th Pay Commission Recommendations Likely To Get Cabinet Nod Today
The implementation of 7th Pay Commission recommendations for the State government employees is likely to be approved formally by the State Cabinet which is scheduled to meet in the afternoon today.
The meeting under the chairmanship of Chief Minister Naveen Patnaik will discuss whether it would follow the Central government rules in implementing the commission’s recommendations or make some changes.
After the Cabinet approval, recommendations regarding salary hike will be cleared and the detailed salary structures for various groups of employees would be published in the official gazette.
Among some other proposals, the agreement made between IOCL, Paradip and State government on tax issue may be tabled for Cabinet approval.
As per reports, the State government is mulling to give arrears to the employees and pensioners for 20 months- from January 2016 to August 2017. The arrears would be around Rs 9000 crore.
While the details of the revised pay matrix for various groups of employees will be revealed today, it is expected that the State government will implement the pay commission recommendations in line with the Centre. In such case there will be a 14.5 per cent hike in the basic pay of each employee and the overall salary will be hiked by 23 per cent.
The annual additional expenditure for the State would be about Rs 4500 crore after the implementation of the recommendations under the 7th Pay Commission.
However, some believe that the government will not face any financial issues with the implementation of the pay panel’s recommendations as it is supposed to get Rs 1500 crore, annually, from IOCL and Rs 17,000 crore as penalty from the illegal mining leaseholders in the State.
On the other hand, the State government seems worried about a loan of Rs 3,000 crore it had taken from the open market during the first five months of the 2017-18 fiscal, said sources.
It is worth mentioning that in the 2017-18 annual State Budget, the government hadn’t clarified whether it made any budgetary allocations for implementation the 7th Pay Commission recommendation. However, under the administration head, the government had proposed Rs 47, 466 crore in the 2017-18 budget. Out of this, Rs 22,000 crore had been allocated for salaries and Rs 11,313 crores for pension.