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7th Pay Commission ramps up gratuity payment limit
Posted on: 28/Feb/2017 3:02:22 PM
From the present gratuity payment limit of Rs 10 lakh, it is ramped up to Rs 20 lakh, according to the centre’s latest decision. And the same is the recommendation suggested by 7th Pay Commission as mentioned in its report submitted to the government.
The Labour Ministry and central trade union representatives met with each other on 23rd February where the move was decided.
The employees’ union suggested removing terms that mandates having at least 10 employees in an establishment and 5 years of service for payment of gratuity. Following appointment of committee to monitor Seventh Pay Commission’s recommendations by the Tamil Nadu government, Rajasthan government has also followed suit.
Vasundhara Raje has set up a committee under retired IAS officer DC Samant. This committee will study in detail about the pay commission’s recommendations. Reports will then be submitted to the state governments in three months.
Amending pay scale of state government, reconsidering allowances, calculating financial impact of implementing these, etc will be recommended by the committee. This committee includes retired officers DK Mittal from Rajasthan Accounts Service and MP Dixit. Furthermore, 14.27 percent increase in basic pay to all government employees is also a recommended suggestion by the Seventh Pay Commission.
Committee reports
After long waiting, the committee of allowances has submitted a detailed report to the government on 22nd February. These recommendations of Seventh Pay Commission will then be reviewed by Finance Secretary Ashok Lavasa.
Cutting down on different allowances including that of house rent allowance (HRA), subsuming few other allowances, etc are recommendations by the pay commission.
The committee, as per reports, has stood against reducing HRA. Following assembly elections in five states, announcements about allowances is likely from the government.
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