New Delhi: The Government of India accepted the recommendations of the 7th Pay Commission which was submitted by the committee. Salaries and pensions for former and current central government employees will go up by nearly 24 percent retroactively from the start of this year. However, it is the lowest ever salary hike in the pay commission.
Important Facts and Points of 7th Pay Commission
1. 7th Pay Commission Arrears will be paid in 2016.
2. 7th Pay Commission benefits will be given to 10 million government employees. The figure is also included nearly 60 lakh pensioners. Among the defence services, 14 lakh serving officers and 18 lakh retired members will be covered.
3. The salary hike will be considered from January 1, 2016.
4. The salary hike in millions of government employees will cost the government about 1 lakh crore or 15$ billioon per year.
5. The cost of salary hike in government employees is a whopping about 0.7 percent of India’s GDP. However, it is the lowest in the last seven decades.
6. Government workers also have been getting half-yearly and annual increments linked to prices.
7. It is very interesting point, about 52 allowances gone away and merge 36 others.
8. Maximum salary of a government employee will be Rs. 2.5 lakh per month, which was earlier Rs. 90,000 per month.
9. The central government is counting on the higher salaries to result in more spending by government employees which could trigger economic growth of the country. 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 central government plans to keep a close eye on the market.