Finance Minister Arun Jaitley is addressing a press conference.
The Cabinet today cleared a hike of at least 23.5 per cent in salaries and allowances for over one crore government employees and pensioners in the 7th Pay Commission. Arun Jaitley is addressing a presser on the hike in salaries and pensions.
Here are the highlights:- A model law that allows shops, malls and cinema halls, among other establishments, to run 24x7 throughout the year received Cabinet assent: Arun Jaitley.
- The law covers establishments employing 10 or more workers except manufacturing units.
- It also provides for women to be employed on night shifts with adequate security.
- Cabinet approves revised cost estimates for 8 new IITs at Bhubaneswar, Gandhinagar, Hyderabad, Indore, Jodhpur, Mandi, Patna and Rupnagar.
- When the 6th pay commission came, it took the government 19 months to implement it.
- When the 7th pay commission recommendations came, the government by and large accepted them.
- Recommendations of 7th Pay Commission to be implemented from January 1, 2016.
- The arrears will be paid this year.
- This Pay Commission covers 47 lakh government employees and 53 lakh pensioners.
- Entry level pay increased from Rs 7,000 to Rs 18,000 per month.
- Based on minimum pay, fitment factor of 2.57 approved for revising pay of all employees uniformly across all level.
- No deduction for group insurance scheme from salary as recommended by the Pay Commission.
- Government to set up various expert groups to decide on allowances.
- Total annual burden of pay, pensions and arrears of 7th Pay Commission recommendations: 1,02,100 crore rupees.
- Gratuity ceiling doubled to Rs 20 lakh and housing loan allowance hiked from Rs 7.5 lakh to Rs 25 lakh: Finance Secretary Ashok Lavasa.
- Pay hike will generate more demand and savings.
- The government employees can plan their investments and savings.