Published On: Fri, Dec 18th, 2015

Pay commission award becomes a boon for central govt employees

New Delhi:The Seventh Pay Commission award becomes boon for central government employees, which will boost central government wages by 23.5 per cent.

Finance Minister Arun Jaitley

Finance Minister Arun Jaitley

After long wait, the Seventh pay commission has submitted its recommendation to hike pay of central government employees. A commendable initiative of the government, the revision of new pay and pension is necessary for the central government employees and pensioners.

As in many countries, government jobs of middle and upper levels in India have been less rewarding in terms of pay and perks. Apart from a sense of job security and perceived power, most of the low paid employees have to struggle to make ends meet with the cost of living going up every year.

Hence, the revision of new pay and pension is necessary for the 47 lakh central government employees and 52 lakh pensioners.

Since the announcement of the Seventh pay commission recommendations, discussions hovered around its impact on a number of areas including inflation, budgetary allocation, efficiency of public services.

Many analysts are harking back to the experience of earlier pay commission awards to judge the impact this time. Such comparisons need great care. The last salary hike in 2008 was much higher at 35 per cent, against 23.5 per cent this time. Moreover, the last award included pay arrears for almost two years, putting far more cash in the hands of government servants.

RBI Governor Raghuram Rajan said the Seventh Pay Commission recommendations will not upset fiscal maths as additional expenditures will be offset by either surplus revenues or expenditure cuts.

However, the price hike of goods and services like transportation, housing and consumable items during the period of post-salary increase is common in the country.

The central government is facing a shortage of around 7.3 lakh staff, the motive behind this move is to achieve a reduction of 10 percent in staff strength in five years, according to report of the Seventh Central Pay Commission.

So, Central government employees need to do more works so as to fill up the shortage of staff with their works, accordingly, they deserve a pay raise.

The Seventh Pay Commission award will attract them to live with dignity and they may be motivated to the quality of service delivery in central government offices is expected to improve which will in turn contribute to higher productivity and growth.


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