Zee Media Bureau


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Since the Central government accepted the 7th Pay Commission recommendations that promise a hike of Rs 1 lakh crore in salaries, perks and pensions, much has been said in the press on how “achche din” have finally arrived for the 50 lakh working and 58 lakh retired employees.


However, here's why the latest bonanza won't amuse government staffers much.



1) Comparatively lower hike


The hike is the lowest in the last 70 years. The increase is built around a 14.27 per cent hike in basic pay. The previous pay panel had recommended a 20 per cent hike which was eventually doubled when it was implemented in 2008.


2) Allowances deferred


The government has deferred the suggestions on allowances for now as Finance Secretary-led committee will further examine suggestions on the same.


3) Inflation will further increase


The Seventh Pay Commission may boost salaries of government employees but it will also stoke inflation as consumption spending will increase respectively. Already, consumer price inflation is hovering around 6 percent.


4) Performance based evaluation dumped


Government employees which were waiting for introduction of performance based salary evaluation mechanism find themselves disappointed as government dumped the plan. So, those officers who were waiting for their extra hard work to be compensated in form of better appraisals have to remain contend with whatever they have at their disposal.