The federal government arrange a committee led by the Finance Secretary to overview the system.
New Delhi:
The federal government has no plans to arrange the eighth Pay Fee for some 5.4 million central authorities workers and pensioners forward of the nationwide election subsequent 12 months, Finance Secretary TV Somanathan has mentioned.
”There may be nothing within the offing concerning establishing the eighth Pay Fee. It isn’t due at current,” Mr Somanathan mentioned on Thursday.
Prior to now, within the run-up to elections, governments have used the establishing or implementation of the Pay Fee as an efficient software to win over central authorities workers, armed forces personnel and household pensioners. The seventh Pay Fee was arrange by the Congress-led UPA authorities in September 2013, months earlier than state and normal elections.
The BJP, nevertheless, has steered away from such a transfer, as an alternative specializing in a overview of a brand new pension scheme that has turn into a degree of rivalry for brand spanking new state and central authorities workers.
Beneath the present scheme, workers contribute 10 per cent of their fundamental wage, whereas the federal government pays 14%. It has turn into politically contentious, with a number of opposition-ruled states switching to the outdated pension scheme that ensures pensioners 50 per cent of their final drawn wage month-to-month, with none worker contribution.
The federal government arrange a committee led by the Finance Secretary to overview the system.
”We’ve got accomplished consultations with all involved and our report needs to be submitted quickly,” Mr Somanathan mentioned.
The federal government might result in adjustments to make sure workers get at the least 40 to 45 per cent of their final wage.
With elections looming, there’s rising political strain on the Finance Ministry to announce and notify the eighth pay fee, regardless of the result of the outcomes of elections in 5 states. State ballot outcomes to be introduced on Sunday are broadly seen to be the semi-final forward of the 2024 nationwide election, wherein Prime Minister Narendra Modi will search a 3rd straight time period.