MCDs to implement 7th Pay Commission report recommendations

The BJP-ruled Municipal Corporations of Delhi (MCDs), which had drawn their employees’ wrath for failing to clear their salaries and dues on time, have announced to implement the Central government’s Seventh Pay Commission report’s recommendations.

As the recommendations on hiking the salaries of workers by 17-23 per cent are being implemented, the three Corporations are likely to go into a financial tailspin as it is expected to put additional burden of nearly Rs 2,000 crore on the cash-strapped civic agencies during the current fiscal. The North MCD, whose deficit has crossed Rs 2,300 crore, has announced to implement the report first ignoring the additional burden of nearly Rs 700 crore.

As per the Budget estimates of the North MCD, the salary expenditure of the Corporation is Rs 2,640 crore — while their internal revenue is only Rs 2,375 crore. The situation of East Corporation is also the same as the agency has a gap of Rs 95 crore in their internal income and expenditure on salaries for the financial year 2015-16. Similar is the condition of the SDMC as the civic body has estimated to earns Rs 2,755 crore against a salary expenditure of Rs 2,640 crore. The three Corporations have around 1.27 lakh employees. Having failed time and again to boost their revenues, the Corporations, except the South body, rely mostly on funds released by the Delhi government to pay their salaries. This is the situation when around 40 per cent posts are vacant and majority of the working employees are contractual who are liable for less salaries than their permanent counterparts.

Now, when the North Corporation has announced the implementation of the pay panel report, it will have to pay 23 per cent increased salary to its existing employees and to its retired employees or pensioners. The Corporation will have to pay seven months’ arrears which will increase the burden further. The South Corporation, too, will have to make a similar payment. The severely hit East MCD will have to spend not less than Rs 500 crore as extra expenditure in various overheads. “Although we are facing financial hardships, yet this decision has been taken keeping in view the interest of the employees. The employees of the Corporation have to work under pressure, besides facing situations arising due to financial position, yet they work dedicatedly in the interest if the citizens. It would certainly help in boosting their morale and improve efficiency,” said Pravesh Wahi, Chairman Standing Committee of North MCD.