Friday, November 9, 2007

No reason to raise pay of govt employees: Panel

The Planning Commission sees no reason to increase the salary of government employees as it feels that wages are already linked to price rise.

"There is no case for pay increase (of government employees) because erosion of income is taken care of by indexation," panel's Deputy Chairman Montek Singh Ahluwalia told reporters after the end of the full plan panel meet.

"With the Sixth Pay Commission's impact looming large, hard-won gains (on fiscal front) could easily be jeopardised," according to the draft Eleventh Plan document approved by the the Commission.

Pointing out that the Pay Commissions were relevant earlier when a large portion of the salary was not indexed, Ahluwalia said the sixth pay panel would take into account the fiscal circumstances while making its recommendations, likely sometime in April next year.

The document further stressed it is imperative that utmost vigilance be maintained against any deterioration in the fiscal situation.