Sixth Pay Commission, close to reality.

The Cabinet is expected to approve the setting up of a Sixth Pay Commission to revise the pay scale of government staff on Thursday.
The proposal is estimated to increase the salary and pension outgo of the Centre by Rs 20,000 crore a year.
According to government sources, since the implementation of the Commission’s awards will take 2-3 years, an interim relief of 10-15% may be announced.

Interestingly, two BJP-ruled states, Gujarat and Madhya Pradesh, have opposed setting up of the commission on the grounds it was against the grain of fiscal prudence and management. If it was indeed set up, the Centre must bear the additional burden, at least in part if not full, they said.

The Fifth Pay Commission, set up in 1994 and implemented in 1997, had cost the government Rs 17,000 crore. According to a Cabinet note, besides the government’s own calculations, a separate 19-charter demand of government employees’ association, if accepted, will result in an additional spend of Rs 7,000 crore.

The note, outlining the commission’s terms of reference, says a review of pay scales has been necessiated due to factors including price rise and “globalisation and liberalisation”.