Published On: Fri, Nov 20th, 2015

Pay commission recommends salary hike: will rise up to 23.55%

The seventh Pay Commission recommended around 23.55% over-all salary hike, which includes salary, allowance, and pension. The salary-growth will benefit at least 40 lakh government servants and over 50 lakh pensioners. Justice A K Mathur, head of the seventh Pay Commission, has submitted the report before Union Finance Minister Arun Jaitly. The report is a 900-pages long detailed dosser. Immediately after the procedures, the report will be examined by a committee of secretaries; with the guidance of Expenditure secretory. And later, after double scrutiny, the recommendations will be materialized from January 1 2016. Granting extreme pleasure to the fresher’s, the recommendations will escalate the entry level pay to Rs 18000 from Rs 7000. Meanwhile, by maintaining same enthusiasm, it will hike the top level pay to Rs  2.5 lakh from Rs 90000. Even if the panel has advised to abolish the pay band and grade pay, it has included a remarkable Health Insurance recommendation. The Health Insurance Scheme is likely to cover pensioners, along with servants.Meanwhile, while addressing media queries, Jaitly asserts; ‘the panel recommendation is also applicable to the universities and autonomous bodies.’ However, the new recommendation has addressed One Rank One Pension demand, the most-awaited demand of recent times. The panel advices a revised pension formula for the military personals, who had retired on or before January 1 2016. Financial Experts revels that the new recommendation will inflict a 0.65% increases in GDP, on the salary and expenditure graph.They further claims; ‘the total salary and pension expenditure on the current fiscal will go up to Rs 5.35 lakh crore.’ However, it seems, the new recommendation will make an impact of Rs 73,650 crore on the Central Budget; and around Rs 29,000 crore on the Railway Budget. Meanwhile, the critics’ raised some concerns about the basic payments; they alleged that the 14.27% is the ever-lowest-hike.

Vignesh

Photo Courtesy : Google/ images are subject to copyright

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Pay commission recommends salary hike: will rise up to 23.55%