Almost all the Central government employees are cheerful as they are getting a good pay hike, which in turn prompts them to think about various investments schemes. Out of all such schemes and plans, housing will be given top priority. They will have surplus funds at their disposal once 7th Pay Commission recommendations are implemented. Once Centre announces pay hike, state governments follow the suit and state government employees will also be benefitted.
Many builders are planning to woo the Central government employees with many offers. They are preparing new schemes for new home buyers. Banks are also making good efforts to come out with new financial schemes to benefit new borrowers. In all, the proposed pay hike would lead and impact the real estate sector, feel analysts. Owing to the increase in demand for housing sector, building materials, cement, steel, accessories industries are hopeful of better business in the next fiscal. Centre has many plans to boost the housing sector. The pay hike would support this demand, it is felt.
Initially, the 7th Pay Commission report had recommended a basic salary of Rs 18,000 but that led to protests from the government employees who demanded it to rise further to Rs 26,000. Now, if the reports are to be believed, the employees falling in the pay matrix level 1 to 5 will get a salary hike after the proposal is sent to the Cabinet in the beginning of April for approval. Finance Minister Arun Jaitley in 2016 had promised to hike pay of the central government employees beyond the suggestion of the 7th Pay Commission. Meanwhile, there are reports suggesting that the government would not pay arrears on pay hike to the central government employees. This proposal will be reportedly placed before the Cabinet by FM Arun Jaitley in April. The official announcement regarding the hike can reportedly come around the month of April. Following the implementation of the recommendations of the Seventh Pay Commission, the basic pay of Central government employees went up from Rs 7,000 to Rs 18,000 per month based on the fitment factor of 2.57. Combined additional financial implication is estimated at Rs 30,748.23 Crore per annum Reports stated that the Gazette will have this information in the next financial year and it might be implemented from April 2018.