Achche Din for Central Govt Employees as Cabinet clears 7th Pay Commission Recommendations!

As the news channels announced Cabinet clearing all recommendations made by the Seventh Pay Commission report that will result in about 23.55 percent overall increase in salaries, #Achche Din arrived for Central Government employees across India.

The increase in allowances and pension for more than 1 crore government staff and pensioners is expected to give a big boost to the economy as it will make consumption demand in urban areas go Northwards. J J

Union Government had set up a high-powered panel headed by Cabinet Secretary PK Sinha in January to process the recommendations of the 7th Pay Commission. The recommendations and now cabinet clearance have a bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.

mage. Reuters

Highlights of recommendations mentioned by Sinha Panel:

·       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.

·   Contrary to 14.27 percent increase in basic pay 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 that is more than double the present Rs 7,000.

·         For greater transparency, anew pay matrix will replace the present system of pay bands and grade pay.

·       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. The least a government officer can now be paid is Rs. 18,000 a month (earlier it was 7,000/ month).