Sunday, 10 April 2016

7th Pay Commission: Guess who else is going to benefit from Central Government Employees Pay Hike!

7th Pay Commission: Guess who else is going to benefit from Central Government Employees Pay Hike!

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 Central 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.

Via:  Zee News

7th Pay Commission: Reasons of delay in implementation

7th Pay Commission: Reasons of delay in implementation

Central Government employees must be wondering why Centre is taking so much time to implement Seventh Pay Commission recommendations.

It's already four months since Pay Commission had submitted its report to Finance Ministry to give final touch to it.

Though, Modi Government recently dropped enough hint that it will implement increment process soon, but no particular time frame was given to the Central staff.

Here are the possible reasons why Government is taking time to implement the hike.

Government needs to arrange fund

As Rs 1.02 lakh crore is needed to implement whole increment process, Centre needs to have proper strategy for the same.

At a time when OROP's expenditures is already taking toll on the exchequer, pay Commission will put extra burden on the government budget.

Grievances of various stakeholders

Government needs to address grievances of various stakeholders including government staff and Army men before taking final call on the same.

While Babus are unhappy with minimum basic pay, Defence personnels say that they shouln't be treated at par with their civilian counterparts in terms of salary and allowances.

Assembly elections

As model code of conduct is in place, Government doesn't want to take risk by announcing implementation date. Centre doesn't want to displease voters at a time when poll process is going on in many crucial states. It is being believed that notification for the 'increment proposal' will be issued once State election will be over.

Procedural delay

Pay Commission will be implemented after cabinet will give it a final approval. Currently, the Implementation cell of the Empowered Committee of Secretaries is trying to address various issues with it. After giving final touch to the report, Empowered Committee will send recommendations to PMO for its nod. Once PMO will through the report, it will be placed before the Cabinet.

Via at OneIndia news

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