Wednesday, June 29, 2016

Media Report on 7th Pay Commission : Cabinet clears 7th Pay Commission, higher salaries seen boosting urban demand : Firstpost

Dear Comrades,

The Cabinet has cleared all recommendations made by the Seventh Pay Commission report that will result in about 23.55 percent overall increase in salaries, allowances and pension for more than 1 crore government staff and pensioners. The move is expected to give a big boost to the economy as consumption demand in urban areas is likely rise owing to the rising income levels.

In January, the government had set up a high-powered panel headed by Cabinet Secretary PK Sinha to process the recommendations of the 7th Pay Commission which will have a bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.
Representational image. Reuters
Representational image. Reuters
The Sinha committee has submitted its report on the recommendations, a PTI report said.
Here's a quick look at the recommendations and the likely implications for the economy:

The recommendations
The Pay Commission recommended 23.55 percent overall increase in salaries, allowances and pension. This is estimated to put an additional burden of Rs 1.02 lakh crore, or nearly 0.7 percent of the GDP, on the government.
The panel recommended a 14.27 percent increase in basic pay, the lowest in 70 years. (A CNBC-TV18 report said citing a government official that the the cabinet has cleared a 20 percent minimum pay hike and 25 percent maximum.)
The minimum pay in government is recommended to be set at Rs 18,000 per month. This is more than double the present Rs 7,000.
The maximum pay is set at Rs 2,25,000 per month for apex scale and Rs 2,50,000 per month for cabinet secretary and others at the same pay level (as against the current Rs 90,000 per month).
In order to bring in greater transparency, the report has recommended replacing the present system of pay bands and grade pay with a new pay matrix.
Of the total financial impact of Rs 1,02,100 crore, the increase in pay would be Rs 39,100 crore, increase in allowances Rs 29,300 crore and increase in pension Rs 33,700 crore.
Also, Rs 73,650 crore of the outgo will be borne by the general budget and Rs 28,450 crore by the Railway Budget.
Related Posts Plugin for WordPress, Blogger...
Related Posts Plugin for WordPress, Blogger...
Related Posts Plugin for WordPress, Blogger...