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Central Government Employees fear delay in getting pay hike

August 10, 2015 by admin Leave a Comment

Central Government Employees fear delay in getting pay hike

Central government employees are being promised bigger pay and allowances in fiscal 2016-17 as Finance Minister Arun Jaitley said in the Parliament on February 27, “the Seventh Pay Commission impact may have to be absorbed in 2016-17.”

The Finance Ministry and the seventh central pay commission said nothing till date about this after the above announcement was made by Jaitley in his pre-budget speech for fiscal year 2015-16.

Central government employees have expressed frustration at this, and are worried that the the seventh central pay commission’s recommendations might not be come out in time.

After getting pay panel recommendations, the finance ministry will review the recommendation and present the report to the cabinet but the car bazar and real estate markets will attempt to prevent the implementation pay panel in time because of the delayed implementation of the Pay Commission will not only employees getting more arrears but could also drive the car sales and real estate markets.

Earlier, the central government employees got arrears for more than 30 months because of the delayed implementation of the Sixth Pay Commission in October 2008; it’s resulted in robust demand for car loans and house loans. The employees paid margin amount of loans from arrears and instalments from their new hike salaries.

According to Neelkanth Mishra of Credit Suisse, nearly one-third of India’s middle class is employed by the government and as the Seventh Central Pay Commission comes through, there will be an improvement in discretionary spending.

“In Tier 3, Tier 4 towns where government employees are 50-60 per cent of the middle class, it is very likely that real estate markets will take off again,” he said.

If implantation of Seventh Pay Commission occurs in time, then car bazar and real estate markets, will have become sufferers.

So, there are miles to go before the pay panel recommendations will be implemented for Central government employees and fund allocation in the next budget and other issues like pretext of Fourteenth Finance Commission recommendations are expected to prevent implementation of pay commission in time for giving benefit to the car bazar and real estate markets at the cost of central government employees.

However, Union Railways Minister and Home Secretary have sought reforms and a better salaries and allowances for top Railways officials and paramilitary forces respectively.

TST

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Filed Under: 7CPC Tagged With: 7CPC, 7th CPC News, Central Government Employees, Finance Ministry, pay hike, pay panel recommendations, Seventh Pay Commission

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