7th Pay Commission and Some Observations

What is Expected to be Proposed by the 7^th Commission:-

The 7^th Pay Commission was formed during the prime ministry of Dr Manmohan Sing in the month of February in 2014. Justice Ashok Kumar Mathur was appointed as the chief of this commission.  It has made a report of 900 pages. The report is said to promulgate 15% salary increase.  It is also going to set forth the basic salary of the lowest grade holder government worker 15,000 INR at least. The commission has completed its report which will be given to the finance minister at 7.30 p.m. on 19.11.2015 proposing 15% salary enhancement starting on 1^st January, 2016. 7^th Commission is also expected to propose the age of retirement.

 Difference of Salaries Since 1^st Commission:-

Every ten years, the government forms pay commission. Thus the difference between the highest grade holder and the lowest grade holder government workers is going to be narrowed. It was 41 times more in the salary structure of the first pay commission in 1946. It means if an I.A.S. is given 41 rupees, the lowest government worker got 1 rupee only. 6^th Pay Commission made it only 12^th times difference.

Year	Pay Commission	Least Basic Salary
1946	1st	35INR
1959	2nd	80INR
1973	3rd	260INR
1986	4th	950INR
1996	5th	3050INR
2006	6th	7730INR
2016	7th	15000INR(Expected)

5million (50 lac) government workers and 5.6 million(56lakhs) pension holders of the central government are like to get the benefit. Then all the state governments are going to announce the salary accrual with certain change. The expenditure of the central government will be increased from 25 thousand crore to 38 thousand crore after the salary growth.

Why Only 15% Hike:Less than 35% of 6^th Commission :-

In 2006, the 6th pay commission announced 35% growth. But this time , the commission is expected to announce 15% hike in salaries. According to some economists, it is to maintain the balance in GDP.  To avoid inflation the commission, is going to propose 15% hike. 25 thousand crore  means .2% of the total GDP of India. Some economists expect that the government is going to encourage the recovery in the domestic economy. Cars, two-wheelers, electronic goods are likely to get theirs better business in this proposal.