Big hike For 1 crore Government Employees, Pensioners in 7th pay Commission 10 Facts
Salaries and pensions for former and current central Government Employees will go up by nearly 24%.
Here is your 10-Point cheat – sheet to this Big Story
- The move will benefit an estimated 10 million government employees including nearly 60 lakh pensioners – starting from January 1, 2016.
- While salaries and allowances have been raised by 23.5%, pensions will increase by 24%.
- The raises – smaller than past increases- will cost the government about one lakh crores.
- While this cost is a whopping 0.7 percent of India’s GDP, the hike is the lowest in the last seven decades.
- The new allowances and hikes were cleared by the cabinet today and are based on the recommendations of the Seventh Pay Commission – a government committee reviews the pay of government employees every decade.
- So government workers get a hefty wage hike every 10 years, a populist wage policy that dates back to independence, in addition to half-yearly and annual increments linked to prices.
- Under the new scheme, the maximum salary for a government servant will be about 2.5 lakhs a month, that’s more than double the top-rung pay of Rs. 90,000 a month. The least a government officer can now be paid is Rs. 18,000 a month, more than double the current compensation of Rs. 7,000 offered to the most junior employees.
7th Pay Commission big hike cleared for Around 50 Lakh Government Employees
- The government is counting on the higher salaries to result in more consumer spending which could trigger economic growth.
- However, some experts believe that the additional cash in the market could fuel inflation. To keep a check on price rise driven by greater liquidity in the market, the government plans to keep a close eye on the market
- A Finance Ministry source, speaking on the condition of anonymity, told NDTV, “Government employees are traditionally known to invest pay comm benefits into few specific sectors like real estate. If they follow this tradition, the real estate sector hit by poor demand may turn out to be the biggest beneficiary.”
Source: http://www.ndtv.com/
Pyari Mohan Muduli says
Why the higher paid salaried officers getting bigest hike in their pay increase in 7th CPC ? Whereas a Gr.B & C officials are getting very low in comparison to their increase of pay ! They think always a poor worker of the so acclaimed populist Govt. of India . Why the disparity is too much in equal comparison of hell and heaven ??? If increase is necessary in all levels why not increase proportionately in commensurate with pay, standard of living, inflated price rise, market conditions,etc.
Please see that the minimum necessity of consuming price of rice, dal etc. are same for high salaried officers and that of poor peon/clerks ?? A rethinking is necessarily needed.
Ramachandran KK says
Let us assume the basic pay of a centre government employ be ‘x’
From Jan16 the DA is 125% so the total pay per month = 2.25 x
NOW CAN ANYBODY THE ACTUAL INCREASE IN THE PAY OF A CENTRAL GOVERNMENT EMPLOY BASED ON THE ABOVE GIVEN DATA.. I think facts in the report is confusing. I hope it is not a mathematical gimmick.
Gautam Bose says
NO big hikes for employees. only big hikes TOP RANK OFFICERS. Please go through all cadres you can see.
raghu says
Write correctly , don’t put headings like this , I am ashamed to read as big hike.