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7th Pay Commission: States that are giving government employees a hike in salary, allowances

LiveMint logoLiveMint 11-07-2017 Livemint

New Delhi: The Devendra Fadnavis government in Maharashtra has become the latest state to implement the Seventh Pay Commission report. The Maharashtra government will enforce it from 1 January 2016 onwards. Legislation to this effect will be implemented in the monsoon session of the legislative assembly that starts 24 July.

Earlier the Madhya Pradesh government decided to implement the Seventh Pay Commission recommendations, which will benefit about 6.50 lakh state government employees.

But MP or several other BJP ruled states are not the first states to implement the Seventh Pay Commission report which was submitted in November 2015 and approved by the Narendra Modi government in June 2016. In fact, states ruled by the Opposition parties took the lead in implementing the pay commission recommendations.

Here’s is a list of states that have accepted the Seventh Pay Commission report and decided to implement it.

■ Uttarakhand: The Harish Rawat-led Congress government was the first state to implement the Seventh Pay Commission for its employees and pensioners in December 2016 when the demonetisation exercise was going on.

The decision to be implemented from 1 January also came ahead of the assembly polls in March-April 2017. The Uttarakhand government also decided to provide 2% hike in dearness allowance since 1 January. The Harish Rawat government’s decision added an additional burden of Rs3,000 crore to the state exchequer.

■ Uttar Pradesh: Like Uttarakhand, the then Akhilesh Yadav-led Samajwadi Party government approved the recommendations of the Seventh Pay Commission.

The committee headed by retired bureaucrat GB Pattnaik had submitted its interim report to chief minister Akhilesh Yadav on 7 December.

■ Jammu and Kashmir: The Mehbooba Mufti government will implement the recommendations from April 2018, giving a pay hike of 23.5% to state government employees and pensioners.

■ Haryana: The Manahor Lal Khattar government on 4 March announced that the state government employees will get the benefits from 1 January 2016.

The chief minister said contractual employees like Anganwadi workers and data entry operators will also be covered under the revised pay package scheme. Haryana is reportedly the first state in the country to allow the revision of pension and family pension as per the Seventh Pay Commission recommendations.

■ Goa: The state government announced the implementation of the seventh pay commission recommendations before the model code of conduct came into force on 4 January.

■ Madhya Pradesh: The Madhya Pradesh government decided to implement the Seventh Pay Commission recommendations on 4 July 2017. This will benefit about 6.50 lakh state government employees.

The arrears of the seventh pay commission recommendations between January 2016 and June 2017 would be paid in three instalments in May every year, beginning from FY2018-19.

It is estimated that the payment of arrears would put an extra burden of Rs5,742-crore on the state government.

According to an estimate, this decision would bring a 14% increase in the present salaries of the state government employees. Read more

■ Maharashtra: The Devendra Fadnavis government has decided to implement the recommendations of the Seventh Pay Commission from 1 January 2016 and pay arrears in three to four instalments from April 2018.

It will cost the state around Rs18,000 crore every year, and raise salaries and pensions of more than 2.3 million state government employees. Read more

■ Tripura: The Tripura government announced on 13 June an average 19.68% pay hike for its employees and pensioners with effect from 1 April 2017. The total expenditure for implementing the new pay scales and pensions will be Rs1,242.69 crore though the allocation for the purpose in the current budget is only Rs600 crore, according to a Hindustan Times report.

Besides above states, Rajasthan and Bihar governments are yet to take a final decision on the implementation of the Seventh Pay Commission recommendations.

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