7th Pay Commission: Rajasthan govt asks for 3 months extension, MP ready to implement

Union Cabinet has given approval for the implementation of 7th Pay Commission. The central government employees are likely to get revised salary starting from July. 

According to the Cabinet's decision, the central government employees will be getting house rent allowance depending on the cities. 

HRA is currently paid at 30% for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities. The pay commission has recommended reduction in the existing rates to 24% for X, 16% for Y and 8% for Z category of cities.

Though the rates have been reduced, the Cabinet decided that HRA will not be less than Rs 5400, Rs 3600 and Rs 1800 for X, Y and Z category of cities respectively.

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After the Madhya Pradesh government decided to implement the 7th Pay Commission recommendation, on the other hand Rajasthan government is demanding three more months for the implementation. 

According to a report by Times of India, government employees in Rajasthan will have to wait more as the committee which was examining the recommendations has now asked for three months extension. 

This means, more than seven lakh employees and three lakh pensioners will have to wait further. 

As per the report, the committee was given today's deadline to submit its recommendation on 7th Pay Commission. Today's deadline came in after getting 30 days extension as orginally the committee was supposed to submit the report on June 7. 

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The state government is expected to spend Rs 10,000 crore on payment of revised pay and pension based on the 7th Pay Commission recommendations. 

However, the Madhya Pradesh government decided to implement the 7th Pay Commission recommendations. The decision was made under the chairmanship of Chief Minister Shivraj Singh Chouhan. This move is expected to benefit about 6.5 lakh state government employees. 

According to a PTI report, the arrears of 7th Pay between the period of January 2016 to June 2017 would be paid in three installments in May every year, beginning from FY 2018-19. 

It is estimated that the payment of arrears would put an extra burden of Rs 5,742-crore on the state government. 

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According to an estimate, this decision would bring 14% increase in the present salaries of the state government employees. The official said this would create an additional annual burden of Rs 3,828-crore on the state's exchequer. 

Till now only two States have come up with the details on 7th Pay Commission.