Pay Commission recommendations are important from
different perspectives.
It has the potential to kick start the economy that has not seen growth revival for quite some time. By putting more money in the hands of the employees, government might succeed in creating more demand for goods and services. With States following in the footsteps of the Centre, it is likely to sustain the enhanced demand for a longer time. At least with a time lag it is likely to have a rub off effect on pay and allowances in the organized private sector.
Pay and pension of central government employees amount to 1% of nation’s GDP. More pay will only further add to the burden of the exchequer. According to the estimates submitted to the Parliament, government employees are likely to get a pay hike of around 16%. This would be around 0.2 to 0.3% of GDP.
Apart from pay hike, there are other expectations from this pay panel. Keeping in view the rise in life expectancy and dearth of competent staff, the age of retirement may be tweaked in favour of the employees. Performance-linked pay is another area the commission may take a serious look at. Flexible working hours to facilitate women and persons with certain disabilities deserve consideration by the pay panel. The recommendations, therefore, are significant and have far-reaching impact.
From GConnect.in
It has the potential to kick start the economy that has not seen growth revival for quite some time. By putting more money in the hands of the employees, government might succeed in creating more demand for goods and services. With States following in the footsteps of the Centre, it is likely to sustain the enhanced demand for a longer time. At least with a time lag it is likely to have a rub off effect on pay and allowances in the organized private sector.
Pay and pension of central government employees amount to 1% of nation’s GDP. More pay will only further add to the burden of the exchequer. According to the estimates submitted to the Parliament, government employees are likely to get a pay hike of around 16%. This would be around 0.2 to 0.3% of GDP.
Apart from pay hike, there are other expectations from this pay panel. Keeping in view the rise in life expectancy and dearth of competent staff, the age of retirement may be tweaked in favour of the employees. Performance-linked pay is another area the commission may take a serious look at. Flexible working hours to facilitate women and persons with certain disabilities deserve consideration by the pay panel. The recommendations, therefore, are significant and have far-reaching impact.
From GConnect.in
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