7th pay commission latest news today: 5 key developments that will impact central government employees hopes
7th Pay Commission: Central government employees are yet to get a word from the Centre over their pay hike demand. The employees have been getting their pay based on a fitment factor of hike of 2.57 times. However, they have demanded a hike by 3.68 times which will also increase the basic pay to Rs 26,000, up from Rs 18,000 at present. A number of developments have happened in the last few weeks that have kept the central government employees' hopes alive. Significantly, Finance Ministry sources had indicated to Zee Business Online earlier that most of the spade work for some good news has been done and bar, announcement, everything else is ready. However, there is no word about the exact nature of the amounts concerned. Check the latest news on this issue:
7th Pay Commission: NPS contribution hiked
7th Pay Commission: The Narendra Modi government has increased the government's contribution on National Pension Scheme (NPS) to 14% of basic salary from the current 10 per cent. However, an employee's contribution has been kept at 10 per cent. The move will benefit approximately 18 lakh central government employees. (Reuters)
7th Pay Commission: Withdrawal exempted from tax
7th Pay Commission: The government has not only hiked its NPS contribution but has also removed the income tax that was imposed by Income Tax dept on withdrawal. This is a massive relief and something that central government employees had been demanding vehemently for a long time. "Tax exemption limit for lump sum withdrawal on exit has been enhanced to 60%. With this, the entire withdrawal will now be exempt from income tax. At present, 40% of the total accumulated corpus utilized for the purchase of the annuity is already tax exempted. Out of 60% of the accumulated corpus withdrawn by the NPS subscriber at the time of retirement, 40% is tax exempt and balance 20% is taxable," the government has said. (PTI)
7th Pay Commission: New Salary and Promotion Rule
7th Pay Commission: As per reports, the government will be implementing a new promotion and salary hike rule for the employees. As per the report, up to 80% weightage will be given to public feedback while considering the appraisal and promotion of an employee. The rule will be applicable to the employees involved in direct dealing with the public. (Reuters)
7th Pay Commission: Old pension benefits on cards?
7th Pay Commission: Central and state government employees have been agitating for the restoration of the old pension scheme. In a significant move, Cabinet secretary PK Sinha has assured the employees that the matter of providing all the benefits of the old pension scheme will be taken up in the next Cabinet meeting. (PTI)
7th Pay Commission: Railways and BSNL Employees
7th Pay Commission: In a big boost for the protesting Indian Railways and BSNL employees, the central government has assured them of looking into their pay and allowances demands to reach a feasible solution soon.
The recent setback in the state elections may force the NDA government to take a prompt corrective action ahead of 2019 General Elections. So, will 7th pay commission fitment factor be hiked, will old pension scheme be reintroduced? It all depends on the action of the Centre based on how it is reading the situation on the ground as well as economically too.