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A quick look at Seventh Pay Commission’s recommendations

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New Delhi:  The Seventh Pay Commission headed by Justice AK Mathur submitted its report to Indian Finance Minister Arun Jaitley on Thursday. It recommended a 16-percent salary hike for government servants with an estimated 47 lakh serving central government employees and 52 lakh pensioners expected to benefit from the recommendations.

Following are some of the highlights:.

  • A 16-percent salary hike recommended.
  • A 24-percent hike in pension, besides a minimum pay of Rs.18,000 per month for all entry-level employees.
  • Rs.2.5 lakh for the senior-most serving officer, the cabinet secretary.
  • Increase in pay will be 16 percent, increase in allowances will be 63 percent.
  • Annual increment of 3 percent recommended.
  • An estimated 47 lakh serving central government employees and 52 lakh pensioners will be impacted.
  • Proposals will entail an outflow of Rs.102,100 crore from the exchequer during the next fiscal.
  • One rank One pension(OROP) proposal recommended for all employees, including the defence personnel, retiring before January 1 next year.
  • Rate of house rent allowance be revised to 27 percent, 18 percent and 9 percent when dearness allowance crosses 50 percent, and to 30 percent, 20 percent and 10 percent when it crosses 100 percent.
  • House building advance ceiling proposed at Rs.25 lakh against Rs.7.5 lakh.
  • Health insurance scheme for central government employees and pensioners.
  • The ceiling of gratuity recommended at a higher rate of Rs.20 lakh, against Rs.10 lakh.
  • For defence personnel, against the existing pay of Rs.6,000 per month for service officers, the proposal is for Rs.15,500.
  • Performance-related pay for all categories of central government employees.

(Inputs from IANS)

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Big reforms Led to India becoming the fastest growing major Economy globally: Garg

It also has enormous implications for emerging markets and developing countries

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The RBI building in Mumbai.
The RBI building in Mumbai. Photo credit: AFP/Sajjad Hussain

The major reforms undertaken by the Indian government for raising economic growth and maintaining macroeconomic stability have made the country one of the fastest growing major economies in the world, said Subhash Chandra Garg, Secretary, Department of Economic Affairs (DEA).

Garg was addressing the Special Event hosted by US-India Strategic Partnership Forum on ‘Indian Economy: Prospect and Challenges’ in Washington D.C on Friday.

Indian economy needs more reforms.
Indian economy needs more reforms.

He said the launch of the Goods and Services Tax (GST) represented an “historic economic and political achievement, unprecedented in Indian tax and economic reforms, which has rekindled optimism on structural reforms.” He further emphasized that India carried-out such major reforms when the global economy was slow.

“With the cyclical recovery in global growth amid supportive monetary conditions and the transient impact of the major structural reforms over, India will continue to perform robustly,” Garg said.

During his meetings, Garg highlighted that the digital age technologies have profound implications for policies concerning every aspects of the economy. It also has enormous implications for emerging markets and developing countries.

Also Read: Biggest Bank Frauds Which Shook The Indian Economy

He expressed that the response to such a transformation will have to shift from ‘catch up’ growth to adoption/adaption of digital technologies for development and growth.

Garg also informed that India has started adopting policies and programmes for transforming systems of delivery of services using digital technologies and connecting every Indian with digital technologies and access through Aadhaar and other such means.

Indian economy should be on rise.
Indian economy should be on rise. Image: Mapsofindia

While citing the example of expanding mobile data access, he mentioned that India is now the largest consumer of mobile data in the world with 11 gigabytes mobile data consumption per month. He informed that India is investing in digital technologies, encouraging private sector to adapt these technologies and also addressing the taxation related issues by introducing equalisation levy.

Garg is currently on an official tour to Washington D.C. to attend the Spring Meetings of the International Monetary Fund and the World Bank and other associated meetings. He is accompanied by Urjit Patel, Governor, Reserve Bank of India and other senior officials. IANS