Central government staff to get 23.5% hike in salaries

The center declared a trend setting pay hike for its employees and pensioners under the Seventh Pay Commission Report. Nearly one crore central government employees and pensioners will get the benefit of the new package from January this year with arrears.

                The new hike will increase the budgetary burden of Rs 102100 crore this year and Rs 72800 crore next year according to the Finance Minister.  

Entry level pay will be RS 18000 whereas the Cabinet secretary will get the highest salary of RS 2.5 lakh. Salary of the Cabinet Secretary will be higher than that of MPs.

Finance Minister Arun Jaitely said that the increased emoluments will promote consumption, savings and tax revenues in the economy.

What makes the pay commission award appealing for the center is its impact on budget. Nearly one lakh expenditure on salaries and pension is expected to bring additional pressure on fiscal deficit target.

The increase in pay and emoluments made by the center may also produce pressure on state governments to raise the salaries of state government employees.