7th Pay Commission approved: 23.55% Increase for 50 Lakh Employess : Urban Demand Boost
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In short: The Pay Commission recommended 23.55 percent overall increase in salaries, allowances and pension. This is estimated to put an additional burden of Rs 1.02 lakh crore, or nearly 0.7 percent of the GDP, on the government.
The Cabinet has cleared all recommendations made by the Seventh Pay Commission report that will result in about 23.55 percent overall increase in salaries, allowances and pension for more than 1 crore government staff and pensioners. The move is expected to give a big boost to the economy as consumption demand in urban areas is likely rise owing to the rising income levels.
In January, the government had set up a high-powered panel headed by Cabinet Secretary PK Sinha to process the recommendations of the 7th Pay Commission which will have a bearing on the remuneration of nearly 50 lakh central government employees and 58 lakh pensioners.
Sources:
http://www.businesstoday.in/current/economy-pol...
http://www.firstpost.com/business/7th-pay-commi...
http://www.ndtv.com/india-news/7th-pay-commissi...
http://www.financialexpress.com/article/markets...
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@bookface wrote:
What abt software employees working in india? Can we expect companies to hike salaries?
Yes that would happen soon as Inflaton would go up
People directly benefiting are railway employees, and others who are directly recruited by Central govt.
only for central govt or for State govt employees too?
@maddydilip wrote:
only for central govt or for State govt employees too?
http://www.gconnect.in/orders-in-brief/7thcpc/7...
http://www.gconnect.in/orders-in-brief/7thcpc/7...
http://zeenews.india.com/business/news/economy/...
http://www.govtempdiary.com/7th-cpc-pay-calcula...
It is not just Central government employees eagerly anticipating implementation of the 7th pay commission and take home higher monthly pay package.
Your next-door real estate agent, car dealer and consumer durables seller are also seen gaining from the pay commission hike. According to reports, almost 3.4 crore individuals (employees and pensioners) will witness increase in their incomes, resulting in a multiplier effect on a couple of professions.
Real estate agent: Realty sector is expected to eventually succeed in shaking off the sluggish demand and witness spurt in the sale of houses in tier 1 and tier 2 cities as more than 80 percent of CCentral government employees lives in these cities
As a result of the foreseen demand, the Reserve Bank of India expects sharp, quick and continuous spurt in the housing index.
Car dealer: With implementation of the 7th CPC, your next door car or two wheeler dealer may rejoice too. The industry expects double digit increase in automobile sales especially two-wheeler, the mini and the compact hatch back segment.
Consumer durables seller: The increase in disposable income will no doubt boost the disposable income leading to increased demand for consumer durables goods like refrigerators, TV etc
Banker: Of course, peaking demand for automobiles, real estate and consumer durable will create demand for consumer loans. The consumer loans section of banks and NBFCs will vie to get the larger share of the indirect gain from the 7th CPC salary hike.
The scenario of crores of potential customers and falling interest rate will announce a win win situation for the banks and consumers both.
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What abt software employees working in india? Can we expect companies to hike salaries?