Wednesday, 25 October 2017

7th Pay Commission: Latest update today, no funds for big hike says govt

7th Pay Commission: Latest update today, no funds for big hike says govt

7th Pay Commission :
Center refuse to increase pay according to recommendations | Oneindia News 

It is almost final that the government will not hike the salary of Central Government employees to Rs 26,000 from Rs 18,000 as per the recommendations of the 7th Pay Commission. There have been talks held on several occasions and they have clearly failed as the government is firm on only a hike to Rs 21,000. CG employees will have to be content with the fitment factor rising to 3 times.

Did GST, demonetisation hurt CG employees? 
The reason the government is not giving into the demand of the CG employees is because there are not enough funds now. The economy has slowed down and also taken a beating due to GST and demonetisation and hence the hike of Rs 26,000 cannot be fulfilled officials say.

Notebandi hit everyone 
While the decision on GST has slowed down things, the government says that it is only temporary. Demonetisation on the other hand has affected several persons including the CG employees. Due to these factors, the government has decided that the basic minimum pay would be hiked to Rs 21,000 and not Rs 26,000.

Not in position to accept demands now 
The government says that it is not in a position to accept the demands of the CG employees now. The government has lost money due to GST and demonetisation. If the government decides to go accept the demand of the CG employees, then it would add to the burden of the exchequer. The Indian economy has considerably slowed down due to demonetisation and implementation of Goods and Services Tax (GST). The GDP growth came down to 5.7 per cent in the first quarter of the financial year 2017-2018.

7th Pay Commission is last, pay will vary
However not all is lost of the CG employees. While the 7th Pay Commission is likely to be the last, the government is now proposing a variable pay hike for CG employees. The government is set to take the decision on pay hike in January and following that the pay hike would be variable and would be reviewed from year to year.

 OneIndia News


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