Giving a grand bonanza to government employees and pensioners, finance minister Arun Jaitley on Wednesday said that the government has accepted the recommendations of the 7th Pay Commission. "Government by and large accepts recommendations of 7th pay panel," Jaitley said.
With the implementation of the 7th pay panel, government salaries are now distinctively higher than the private sector. Therefore, there should not be any more complaints or protests, Jaitley said at the press conference.
Earlier in the day, the Union Cabinet had approved the panel's recommendations with minor changes.
The hike in basic salaries, which will benefit around one crore government employees and pensioners, will be implemented retroactively, from January 1, 2016 and the arrears will be paid this year. While the salaries and allowances will rise by at least 23.5 per cent, the entry-level pay will increase from Rs 7,000 to Rs 18,000.
The pay panel has estimated that the implementation of its recommendations could result in an additional burden of Rs. 1.02 lakh crore to the exchequer.
"Among the beneficiaries include 47 lakh government employees and 53 lakh pensioners. Out of this there will be 14 lakh serving defence personnel and 18 lakh pensioners among the defence personnel," Jaitley said.
The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.
One of the key changes suggested by the pay commission has been the 'New Pay Structure', under which the existing system of pay bands and grade pay will be ejected and a new pay matrix will be brought in to bring about more transparency.
Allaying fears of government's fiscal maths going wrong, Jaitley said the budget has provided for the anticipated expenditure and it did not come as a surprise.
Concerns have also been expressed over the extra money in the economy pushing up inflation. The minister admitted that there will be some inflationary pressure.
Top Comment
Even after getting this very high increase in salary neither these people work sincerely nor stop harassing common people.
Meanwhile, the Sensex responded positively to the string of government measures aimed at reviving the economy and rallied nearly 216 points.
http://timesofindia.indiatimes.com/business/india-business/7th-Pay-Commission-sets-entry-level-pay-in-government-jobs-at-Rs-18000/articleshow/52975283.cms
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