Government of India has accepted the 7th Pay Commission Recommendation for the government employees. The 7th pay commission will feature total budget of 1.84 Lakh Crores a stiff increase from the 1.18 Lakh Crores from 6th pay commission. However, the number of employees have also increased in the last decade.
As per the new 7th Pay Commission, employees will be benefitted with average 23.55% of hike. The pay commission will be applicable for almost 4.5 million employees and 5.5 million pensionaries. As per the revised payment model, a fresh IAS officer now will draw close to 57000 INR against ₹24000 at current system. The Sepoy in Army will now earn around ₹22000 against around ₹9000 now. Even the minimum grade employees will earn more than ₹20000 after 7th Pay Commission that is much higher than Private.
Government has also squashed the grade based payment and introduced pay matrix. There will no interest free vehicle loan as well.
The effective date for this Pay Commission is January 1,2016. The higher payment of the government employees will increase the market consumption and boost the economy as well.
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