Recommended date of implementation of the commission is 01.01.2016. Universal demand of all parties and employees federations was for a ratio of 1:8.
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-One Rank One Pension has been proposed for civilian government employees on line of OROP for armed forces. With this, at least 52 lakh pensioners and 47 lakh employees will get 23.6% hike in their pensions and salaries. The Cabinet has cleared all the recommendations which were made by seventh pay commission which will result in about 23.55 percent increase. The recommendation was the lowest in 70 years. The 6th Pay Commission had recommended a 20% hike, which almost doubled when implemented in 2008.
According to SBI’s Economic Research Department report, the recommendations are estimated to put an additional burden of Rs 1.02 lakh crore or almost 0.7 per cent of the GDP on government’s exchequer, although the provisions made by the Union Budget 2016-17 were at Rs 53,844 crore.
“The hike would boost consumers’ spending power, which will increase flow of money into the domestic market, leading to a stimulation of economy”. The global factors being uncertain because of BREXIT, only domestic demand will help India to grow going forward.
Jaitley also said the Central government on Wednesday approved four-laning of three major highways, one each in Punjab, Odisha and Maharashtra.
From allowances to pensions, the payouts of almost 98 lakh Central government employees will be decided on 29 June.
“This will come be effective from January 1, 2016”, he said. Now that the central government has accepted the report of the Central Pay Commission, most state governments will also follow suit after a gap of six months to a year. Catch more and stay tuned with us.
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The 7th Pay Commission had recommended 23.55 per cent overall hike in salaries, allowances and pension involving an additional burden of Rs 1.02 lakh crore or almost 0.7 per cent of the GDP. The RBI’s current reflation forecasts did not take into account the influence of salary hike.
