7th Pay Commission: Odisha government employees get Diwali gift; Centre clarifies on disability pension

The Odisha government led by Chief Minister Naveen Patnaik has decided to implement the recommendations of the 7th Central Pay Commission (CPC), a move that will benefit about four lakh employees and approximately three lakh pensioners of the state. In a related development, the Centre said that disability pension paid to defence personnel will continue to be paid at the pre-December 2016 levels till the anomaly committee takes a decision on the issue.

"I am happy to announce that the state government will implement the 7th Pay Commission recommendations. A fitment committee is formed for working out the modalities. This will benefit the state government employees and pensioners," PTI quoted Naveen Patnaik as saying. 

The overall hike recommended by the 7th CPC was 23.55 percent in salary and allowances with effect from January this year.

The Odisha government's annual salary bill of Rs 29,800 crore would increase by about Rs 5,000 crore on account of the implementation of the CPC recommendations, PTI added. 

Meanwhile, the defence ministry issued a clarification on the disability pension paid to the defence forces, following a controversy.

"The disability element which was being paid to pre-2016 Defence Forces Pensioners as on 31.12.2015 will continue to be paid pending decision on the recommendations of the Anomaly Committee," the defence ministry said in a statement on Saturday.

The recommendations of the 7th CPC cover 47 lakh Central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

The 7th Central Pay Commission had recommended a shift from the percentage-based system to slab-based one for the defence forces, triggering a furore. 

"The feature that stands out when the historical evolution of the regime relating to disability pension is studied is the shift from slab based system to a percentage based disability pension regime consequent to the implementation of the VI CPC's recommendations.

"This move has been contrary to the tenets of equity insofar as treatment of disability element between Officers and JCOs/ORs is concerned borne out by the fact that the ratio of maximum to minimum quantum of compensation for disability across the ranks is now disproportionately high...

"The Commission is therefore of the considered view that the regime implemented post VI CPC needs to be discontinued, and recommends a return to the slab based system," the 7th CPC observed.