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7th Pay Commission report on allowances: Signs of the implementation of the 7th Pay Commission report recommendations on allowances is now becoming visible in terms of disbursement of arrears and allowances. The 7th CPC report was set up by Government of India and gives its recommendations regarding the salary structure of the government employees. The staff has been waiting for a long time and no news has been forthcoming adding to their anxiety. However, sources have revealed from time to time that things are moving forward and it has reached the stage to be put before Prime Minister Narendra Modi led Cabinet soon. Here are five points to note about the 7th Pay Commission latest news: (AP/PTI)
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1. 7th Pay Commission report is expected to benefit over 1 crore employees with an additional financial impact of Rs 1,02,100 crore on account of implementation of all its recommendations in 2016-17. Further, an additional implication of Rs 12,133 crore will be there on account of payments of arrears of pay and pension for 2 months of 2015-16. (Reuters)
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2. 7th Pay Commission report: The 7th Pay panel report is running into the second year since its implementation in 2016 and with timely disbursements of allowances to employees it is expected that the demand and consumer spending in the economy will be boosted which is likely to give a huge push in terms of manufacturing activity, a positive impact on jobs and revenue generation which will further boost overall growth. (Reuters)
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3. 7th Pay Commission report: As per the 7th CPC, the present system of Pay Band and Grade Pay has been disbursed and a new Pay Matrix has been introduced. This will result in separate Pay Matrices for Civilians Defence Personnel and Military Nursing Service. The CPC has introduced an index of rationalisation which means for a newly recruited employee at the lowest level the salary will be Rs 18,000 whereas for a newly-recruited Class-I officer, it is Rs. 56,100. (Reuters)
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4. 7th Pay Commission report: The Disbursement of allowances may have an effect on aggregated demand in the economy which will trigger higher consumption. Furthermore, as household income will expand, the savings of the employees will expand too. (Reuters)
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5. 7th Pay Commission report: The fiscal deficit is to be impacted as the increased salary will have to be accommodated with pension payments. In overall, the pay hike will push demand and consumer spending in the coming times. (Reuters)
‘We get at least one order everyday, profitability is rising,’ says Rahul Mithal
