7th pay panel, shops Act on Cabinet agenda

Model Act allows women to work nightshifts

The union cabinet is expected to discuss the recommendations of the 7th Pay Commission for Central government employees that has proposed a nearly 15 per cent increase in basic pay along with a model shop and Establishment Act that would allow cinema halls, restaurants, shops, banks and other such workplaces to be open 24/7 in a meeting scheduled for tomorrow.

The Cabinet might also take up the National Mineral Exploration Policy (NMEP) tomorrow, which will pave the way for auction of 100 prospective mineral blocks, boosting India's mining potential

Officials said the model shops and establishment act would also enable women to work during the night in such offices with mandatory cab services and other workplace facilities for them.

 

The draft law proposes to cover all premises, barring factories, or shops with work related to printing, banking, insurance, stocks and shares, brokerage or theatres, cinema and "any other public amusement" which is currently not covered under the Factories Act 1948.

All such units which employee 10 or more workers are proposed to come under this Act.

According to the labour ministry, the government has decided to keep warehouses under the purview of the Act after several meetings with stakeholders even though trade unions have opposed it.

However the implementation of the act will depend on the states as labour is in the concurrent list and states have their own law governing the functioining of shops and establishments.

Meanwhile, the 7th pay commission had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent.

"Considering the tight fiscal position this year, the government may improve upon the Pay Commission recommendation for basic pay to 18 per cent or at best 20 per cent," a senior official said.

The 7th Pay Commission report will be effective from January 1, he said, adding that the Cabinet will decide if the arrears for the six months have to be paid in one go or in installments.

A secretaries' panel, headed Cabinet Secretary P K Sinha, has already vetted the 7th Pay Commission recommendation and its report is being translated into a note for Cabinet.

The government had in January set up the high-powered panel to process the recommendations of the 7th Pay Commission which will have bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

The Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or nearly 0.7 per cent of the GDP.

The entry level pay has been recommended to be raised to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.

The secretaries' panel may have recommended raising minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.

While the Budget for 2016-17 fiscal did not provide an explicit provision for implementation of the 7th Pay Commission, the government had said the once-in-a-decade pay hike for government employees has been built in as interim allocation for different ministries.

Around Rs 70,000 crore has been provisioned for it, the official said.