Seventh Pay Commission Report Will Be ‘Badly Affected’ Following Recent OROP Announcement

Indian Military Veterans

New Delhi: The recent One Rank One Pension (OROP) announcement has to take it toll on Seventh pay commission report for central government employees.

Finance Minister Arun Jaitley

The Government has announced the One Rank One Pension scheme for the Ex-Servicemen. The estimated cost of One Rank One Pension (OROP) on arrears alone to the exchequer would be Rs 8000 to 10000 crore at present, and will increase further in future.

Seventh pay commission will definitely bring also toll on the exchequer as government has to manage OROP’s expenditures before Seventh pay commission expenditures.

Experts say that Central government’s salary bill will rise by 9.56% to Rs 1,00,619 crore after Seventh pay commission will come into effect.

Pay commission report will be out in a few months. As the Pay Commission merges existing DA with basic salary of government employees, the annual pension costs will go up substantially; and that will rise further depending upon the actual pay hike that is considered.

Officials of the finance ministry argue that the next Budget will not be badly affected since there is a cushion provided by, for instance, low oil prices—the OROP arrears and pay commission are not to be paid out at one go, but will be paid in installments.

This OROP announcement will be affected Seventh pay commission report badly, especially in salary hike and increasing allowances,” said a pay panel official.

“We have to look financial health of government before submitting our report. We have to save financial position of government to run the nation smoothly. We are not only to work for pay hike.” he added.

TST