New Delhi:
In a big bonanza for more than 1 crore government employees and pensioners, the Cabinet has approved the implementation of the 7th Pay Commission. With this, the salaries and allowances will be hiked by at least 23.5 per cent.
Here are some facts you should know:
1. The move will benefit an estimated 10 million government employees including nearly 60 lakh pensioners, with effect from January 1, 2016.
2. Salaries and allowances have been hiked by 23.5 per cent, while pensions by 24 per cent. The government will have to spend around one lakh crores every year.
3. This cost is 0.7 per cent of India’s GDP, while the raise is the lowest in the last 7 decades.
4. The cabinet has cleared the new allowances and hike on the basis of recommendations of the 7th Pay Commission.
5. Half-yearly and annual increments linked to prices have been given to government workers. This move will do away with 52 allowances and will merge 36 others.
6. The new scheme will now allow a government servant draw a salary of about Rs 2.5 lakhs per month. This amount is more than double the pay of Rs 90,000 per month.
7. A government employee will now be paid Rs 18,000 per month, the least. This is more than double the current Rs 7,000 given to the most junior employees.
