7th Pay Commission: Bad news for government employees?

      7th Pay Commission: Bad news for government employees, allowance hike may be delayed by 2 years

New Delhi, June 24: In what could a disappointing news for government employees,Prime Minister Narendra Modi led government may defer the allowance hike proposed in the 7th Pay Commission recommendations.

In order to save about Rs 60,000 crore, the government may delay the a revision of allowances recommended by the 7th Pay Commission by two years to 2018-19, reported.
Source:Business Standard.
Bad news for government employees, allowance hike may be delayed by 2 yearsWhile the Center is likely to give green signal tothe revision of pay and pension as recommended by the 7th Pay Commission, it could delay the revision in allowances by two years. There were reports that the government was concerned about the populist measures suggested by the Empowered Committee of Secretaries. Fearing a steep jump in inflation, Finance Ministry could scale down the recommendations of the 7th Pay Commission, sources said.The 7th Pay Commission, headed by Justice A K Mathur recommended 23.55 per cent increase in salary, which also includes hike in allowances. The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The panel proposed 63 per cent hike in allowances.
The implementation of 7th Pay Commission recoomednations could adversely impact the economy as it would increase burden on state exchequer by Rs 1,00,000 crores. By delaying allowance rise, government can save about Rs 60,000 crore. The Empowered Committee of Secretaries has reportedly recommended a whopping 30 per cent hike in government employees’s salary, making the minimum amount Rs 23,500 and the maximum  to Rs 3,25,000.