Is 7th Pay Commission a challenge for 2016-17? 2 govt documents, 2 views

THE Economic Survey tabled in Parliament on Friday noted that the Centre’s expected wage bill (including the railways) will go up by around 52% because of the 7th Central Pay Commission, but the pay hike is unlikely to destabilize prices; nor will it have any major impact on inflation. But the Rail Budget tabled in Parliament a day before the Economic Survey said it in clear terms that it is a challenge calling the 7th Pay Commission one of the headwinds beyond the control of Indian Railways. Railway minister in his Rail Budget speech said the following with regard to the 7th Pay Commission:

Beating The inflation: A PSU babu of 2009 is better off than his counterpart of 1971

AN average employee of a public sector undertaking today is better off than his counterpart nearly four decades ago if a comparison is drawn between rise of emoluments vis-à-vis an increase of consumer price index, which factors in inflation. Though many of the PSUs have sound internal resources to afford even a better pay to its employees than what they have been offering now, the current crisis in Air India has forced analysts to revisit the recently presented Economic Survey, 2008-09, which compares the increase in the per capita emoluments of public sector employees in India with the increase in the consumer price index (CPI) over the years. The per capita income of public sector employees from 1971-72 to 2007-08 rose by 58 times whereas the rise of CPI was mere 30 times, an analysis in a recent media report showed. That means an Air India employee, for example, should have earned substantially lower if rise in CPI had been a major criteria to increase salary. Yet, the establishment cost of the government as a whole is not alarmingly high as yet. The provision for pay and allowances of the government employees for 2009-10 is Rs 85,078 cr, which is just 8.5% of the government’s proposed expenditure of Rs 10 lakh crore during the fiscal, the report further said. A woman civil servant to get 180 days of child adoption leave The government has decided to increase the Child Adoption Leave from 135 days to 180 days in line with the maternity leave which was already increased to 180 days according to the recommendation of the 6th Pay Commission. According to an office memo, issued by department of personnel and training (DoPT), a female government servant in whose case the period of 135 days of Child Adoption Leave has not expired on the date of issue of these orders shall also be eligible for Child Adoption Leave of 180 days. It was further decided that a male government servant including an apprentice may be sanctioned Paternity Leave for a period of 15 days within a period of six months from the date of valid adoption.