New Delhi, August 15: The Central Government has unanimously increased the gratuity limit of more than 47 lakh employees to Rs 20 lakh from Rs 10 lakh. This news brings a smile on Central Government employees as they will get more money for their retirement and will also help them to shape their future plan in a much organised way. Under the 7th Pay Commission, IAS officers to peons all will get enhanced salaries with arrears on September 1. The Narendra Modi government has not yet decided to increase salaries of 14 lakh strong armed forces.
The implementation of 7th Pay Commission is a burden of Rs 1.02 lakh crore on Indian exchequer. Experts believe that Indian economy has been showing “bright” near-term prospects, but reducing fiscal deficit to 3.5% of GDP in 2016-17 is a challenge because of additional liabilities on account of pay revision. (Also Read: 7th Pay Commission latest news: Government employees to be paid allowances before Dussehra)
After the Central Government employees union had threatened to carry out an indefinite strike, Centre had set up a high-level committee, comprising of Health, Defence and Home Secretaries. The committee will also look into the demands made by National Joint Action Committee (NJAC) which wants the minimum salary to be scaled up to Rs 26,000, rather than Rs 18,000, which has been currently proposed.
On June 29, the 7th Pay Commission recommendations were accepted by Union Cabinet. Although the basic salary was hiked by 14.3 per cent, the hike in allowances was withheld due to the various anomalies.
Meanwhile, reports suggest that the government employees would also be paid arrears in one-time installment through their salaries in the upcoming months.