The government is well and truly in election mode. The Sixth Pay Commission has reportedly recommended hikes of up to 33 per cent in the salaries of Central Government employees and, as announced in the Budget, the report will be out within the next three weeks.
The wait is almost over for the Government of India employees. CNN-IBN has learnt that the Sixth Pay Commission is close to finalising its recommendations and a windfall is on the cards for employees.
According to sources:
Salaries are expected to increase by 25 to 33 per cent across the board
The hike will take place with retrospective effect from January 1, 2006
However there is no scope for any interim relief till the recommendations are implemented.
The recommendations come at a time when the government is already burdened with a huge farm loan waiver and other schemes benefiting the social sector. But fears of pressure on the treasury are countered by the larger-than-expected tax collections and an improving fiscal deficit.
But some voices feel the government may need a few years to absorb the financial impact as had happened during the Fifth Pay Commission. While the railways have made some provisions for the pay hike in their Budget, the government may seek grants in Parliament.
Based on 2007-08 figures, the government may have to shell out an extra Rs 13,000 crore for salaries, while arrears may cost up to Rs 40,000 crore, and may need to be paid in installments.
State governments are not obliged to match the pay scales set by the Centre but with the state-Centre wage gap widening, the states may have no option but try and match up to the Centre’s bonanza.
source:CNN-IBN
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