New Delhi, April 25: This might disappoint the Central government employees as earlier reports suggested that Centre will start paying 'increased salary' to Government staff from the month of July. but, now reports suggest that Government employees will now have to wait till September-October to get higher salaries under the 7th Pay Commission. will also pay six months' arrears along with the increment.
As per a Financial Express report, "The Centre is likely to implement the Seventh Pay Commission award from September-October, the beginning of the festive season, to give a consumption boost to the economy. However, in order to restrict the budgetary outgo, it would pay the revised allowances only prospectively, unlike the pay component that will be paid along with arrears from January 2016."
The government is expecting that if higher salaries will be released around the festivals (Durga Puja and Diwali), it will boost consumption and will have a great effect on the economy.
"If the revised allowances take effect only from September this year, the savings to the exchequer would be to the tune of Rs 11,000 crore," official sources told FE.
It's already been four to five months since Pay Commission had submitted its report to Finance Ministry to give final touch to it.
Though, Modi Government recently dropped enough hint that it will implement increment process soon, but no particular time frame was given to the Central staff.