7th CPC LATEST NEWS :-
NEW
DELHI: Salaries and
pensions for former and current central government employees will go up by
nearly 24 percent retroactively from the start of this year.
Here is your 10-point cheat-sheet to this big story:
1.
The move will benefit an estimated
10 million government employees including nearly 60 lakh pensioners,
starting from January 1, 2016. Among the defence services, 14 lakh serving
officers and 18 lakh retired members will be covered.
2.
Arrears will be paid within this year, said
Finance Minister Arun Jaitley.
3.
The last major hike in 2008 saw an
average raise of nearly 50 percent. The auto and retail sectors gained in the
stock market after today's announcement.
4.
The increments - considerably
smaller than past increases- will cost the government about one lakh
crores or 15 billion dollars every year.
5.
While this cost is a whopping 0.7
percent of India's GDP, the hike is the lowest in the last seven decades.
6.
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 which reviews the pay of government
employees nearly every decade.
7.
Government workers also have been
getting half-yearly and annual increments linked to prices. The new rules do
away with 52 allowances and merge 36 others.
8.
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.
9.
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.
1 .
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 TRENDING. //NDTV NEWS//
No Government Employee could spend money for purchases, which will effect Stock Market, with this meagre increase in salary in the past 7 decades. The percentage of Growth in salary is very less when compared to the price rise in commodities market. The Government is not able to cut the prices but very enthusiastic to cut and limit the allowances to the Government Employees.
ReplyDeleteNo Government Employee could spend money for purchases, which will effect Stock Market, with this meagre increase in salary in the past 7 decades. The percentage of Growth in salary is very less when compared to the price rise in commodities market. The Government is not able to cut the prices but very enthusiastic to cut and limit the allowances to the Government Employees.
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