Top carmakers, including Maruti Suzuki India, Hyundai and Honda, are expecting a spike in their sales following the implementation of 7th Pay Commission recommendations.
After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent.
The Cabinet on Friday gave mandate to the 7th Pay Commission for revising salaries of over 50 lakh central government employees and remuneration of 30 lakh pensioners.
Employees and workers will meet on November 27 to protest against the recommendations
The Centre on Thursday hiked Dearness Allowance (DA) to 50 per cent of basic pay from the existing rate of 46 per cent effective from January 1 this year, benefitting over 1 crore employees and pensioners ahead of general elections. The Union Cabinet has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners from January 1, 2024, representing an increase of 4 percentage points over the existing rate of 46 per cent of the basic pay/pension, to compensate against price rise, Union Minister Piyush Goyal said after the Cabinet meeting.
Government's effective supply-side measures and commendable commitment to fiscal consolidation will have a salutary impact on inflation, says the RBI report.
The outgo towards salary will further rise in 2017-18 to over Rs 1.28 lakh crore.
It also promised financial assistance of Rs 24,000 annually to all dependent widows and single mothers, two free LPG cylinders to all the beneficiaries of the PM Ujjwala Yojana and 24x7 power supply.
A slew of sops were announced for teachers, employees of municipalities and others.
A demand for raising wages and allowances of MPs was made in the Rajya Sabha on Friday with members demanding that their salaries should be higher than the revised scale of the Cabinet Secretary.
The proposed hike is in accordance with the accepted formula based on the recommendations of the 6th Pay Commission
In his Budget, Jaitley announced a pay hike for the President to Rs 5 lakh per month, Rs 4 lakh for the VP and Rs 3.5 lakh for governors.
The MSP was introduced to the services recognising their unique service conditions and hardships.
West Bengal and Maharashtra, despite having fewer public sector employees, are likely to face a higher burden of salaries and pensions.
Upon implementation of the 7th Pay Commission the expected yearly burden on the central exchequer will be more than Rs 100,000 crore. Central government employees will get on an average a 24 per cent pay hike. Still, the unions aren't happy.
All interest free advances stand discontinued with the exception of interest free advance for medical treatment, travelling allowance for family of deceased, travelling allowance on tour or transfer and leave travel concession
The new pay scale will come into effect from January 1.
There shall be two dates for grant of increment - January 1 and July 1 every year - instead of the existing July 1 only.
The S&P BSE Sensex rose 216 points to end at 26,740 and the Nifty50 gained 76 points to close at 8,204.
Analysts expect earnings to become increasingly relevant given that the stocks have rallied on positive sentiment and the gush of liquidity. Macro factors, they suggest, have already led to a large re-rating in most counters
The Commission will now have time until December 31 to submit its report.
The recommendations will benefit 47 lakh central government employees and 52 lakh pensioners.
Jaitley said the government has been able to improve its budgeted expenditure.
The move comes following the implementation of the 7th Pay Commission's recommendations which has created an anomalous situation in which the salary of the President is Rs 1 lakh less than that of the country's top-most bureaucrat, the Cabinet secretary.
The Union cabinet has given its nod for the revision of salary and allowances of lieutenant governors of Union Territories and it will be on a par with that of the secretary to the government of India, an official statement said.
The armed forces are seeking an enhancement of allowances for their personnel posted in "hardship" areas on the pattern of high-altitude Siachen in Jammu and Kashmir.
Dearness Allowance for central government employees has been hiked to 31 per cent of the basic pay from 28 per cent with effect from July 1, 2021, the Finance Ministry said. In an office memorandum, the Department of Expenditure, under the Finance Ministry, said the term 'basic pay' means the pay drawn as per the 7th pay commission matrix and does not include any other type of pay like special pay, etc. "....the Dearness Allowance payable to central government employees shall be enhanced from the existing rate of 28 per cent to 31 per cent of the basic pay with effect from July 1, 2021," said the office memorandum dated October 25.
The revised salaries of central government employees are likely to be paid from July 1, 2016.
RBI said more monetary transmission to support growth continues to be critical.
'The fiscal deficit target of 3.9 per cent of GDP seems achievable.'
Fitch frowns at government pay hikes.
The Union Cabinet on Friday increased the dearness allowance and dearness relief by 4 per cent to 42 per cent to benefit 47.58 lakh central government employees and 69.76 lakh pensioners. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be Rs 12,815.60 crore per annum, I&B Minister Anurag Thakur told reporters after the meeting of Cabinet Committee on Economic Affairs (CCEA).
Talking to reporters, state medical education minister Girish Mahajan said he has asked resident doctors to engage in a dialogue and urged them not to stretch the matter further.
Railways to have functional autonomy, bear salary burden
The announcement of a deferral is expected to be part of Finance Minister Arun Jaitley's Budget speech on February 29.
Highlights of the RBI monetary policy.
The policy review observed that the moderation in inflation, excluding food and fuel, that was witnessed in the first quarter of 2017-18 has "by and large, reversed".
Modi govt faces extra spending burden due to policies like 7th Pay Commission and OROP
There was widespread criticism from opposition parties and the military establishment over a letter issued on September 30 which had introduced a slab-based system
Farmers with land sizes less than 0.01 hectare have an average annual income of Rs 54732 and annual consumption of Rs 61296, thereby, a debt of Rs 6564 each year. Compare this with the minimum pay for a government employee, says Devanik Saha.
