New Delhi: The Union Government has approved 15 per cent hike in the basic pay of central government employees, including the armed forces, with effect from January 2016.
This decision will allow 47 lakh central government employees and 52 lakh pensioners in the country to draw more money and benefits from the nation’s exchequer.
Even though the hike in the basic is 15 %, the overall hike will be 23.55%. The 7th Pay Commission Panel had recommended a near 15% hike in basic pay.
This hike will bring more disposable income in the hands of central government employees. FMCG, white goods, 2-wheelers, entry level passenger vehicles, Housing sector and NBFCs will benefit from the rise in the salaries of government employees.
Prime Minister Narendra Modi had, a few days ago, set a target for tax officials to double the tax payer base in the country to 10 crore from the current 5.3 crore.
