Its coffers may be empty, but Punjab today notified the Sixth Pay Commission for its over four lakh employees and pensioners and 1.25 lakh staff of boards and corporations. Former chief secretary RS Mann has been appointed commission chairman.
Setting up a pay panel seems to be a ploy of the SAD-BJP government to woo the staff and pensioners ahead of the Assembly elections in early 2017. It generally takes up to two years for the Pay Commission to come up with the recommendations. These are then submitted to the government for implementation. Thus, in all likelihood, the new scales will be implemented by the next government.
With the state’s revenue growth much lower than targeted for this fiscal, and almost 65 per cent of the revenue going into salaries and pensions, a new wage board at this juncture would deal yet another blow to Punjab’s fiscal health. This year, salaries of government employees will take away
Rs 18,354.24 crore from the state’s near-empty coffers. Another Rs 7,182.11 crore is to go towards the payment of pensions and retirement benefits. Each year, the salary bill of the government rises by almost Rs 2,000 crore.
Recommendations of the new wage board, if made on the lines of the central wage board which has recommended a hike of over 20 per cent in salaries, would not be sustainable in a state like Punjab, which is reeling under a financial crisis. This year, the revenue deficit is already 75 per cent over the revenue deficit of last year.
Though the terms of reference are yet to be finalised, sources say these will be decided by the Finance Department and given to the Personnel Department for
a final notification.
Sources said the terms of reference would be such that these make the Punjab employees’ salaries on a par with the revised salaries of the Central government staff, rather than giving them a similar hike (of over 20 per cent).
Setting up a pay panel seems to be a ploy of the SAD-BJP government to woo the staff and pensioners ahead of the Assembly elections in early 2017. It generally takes up to two years for the Pay Commission to come up with the recommendations. These are then submitted to the government for implementation. Thus, in all likelihood, the new scales will be implemented by the next government.
With the state’s revenue growth much lower than targeted for this fiscal, and almost 65 per cent of the revenue going into salaries and pensions, a new wage board at this juncture would deal yet another blow to Punjab’s fiscal health. This year, salaries of government employees will take away
Rs 18,354.24 crore from the state’s near-empty coffers. Another Rs 7,182.11 crore is to go towards the payment of pensions and retirement benefits. Each year, the salary bill of the government rises by almost Rs 2,000 crore.
Recommendations of the new wage board, if made on the lines of the central wage board which has recommended a hike of over 20 per cent in salaries, would not be sustainable in a state like Punjab, which is reeling under a financial crisis. This year, the revenue deficit is already 75 per cent over the revenue deficit of last year.
Though the terms of reference are yet to be finalised, sources say these will be decided by the Finance Department and given to the Personnel Department for
a final notification.
Sources said the terms of reference would be such that these make the Punjab employees’ salaries on a par with the revised salaries of the Central government staff, rather than giving them a similar hike (of over 20 per cent).
