A Big Bonanza for Government Employees
The government accepted the recommendations of the 7th Pay Commission and cleared 23.5% pay hike for Central Government staff, benefitting both employees as well as pensioners. The salary hike will be effective from January 1, 2016. Central Government employees have a lot to cheer about as even the starting salary of new appointees has been raised to 18000 INR. Newly recruited Class I officers will receive Rs. 56,100. This is not all, the ceiling of house building advance is now 25 Lakh INR and that of gratuity 20 Lakh INR. Finance Minister Arun Jaitley said that this pay hike will narrow the gap between the government and private sector salaries. It will attract high-quality talent to the government sector. With this pay hike, the government is expecting to boost spending. It is expected that real estate market too will benefit from the salary increase of close to one crore Central Government employees. In the coming months this pay hike is expected to fuel the Indian economy.