The Cabinet led by Prime Minister Narendra Modi has approved the implementation of the recommendations of seventh Central Pay Commission (CPC) on pay and pensionary benefits. It will come into effect from January 1, 2016.
"This is going to be major incentive for government officials who will now be getting emoluments almost at par with their counterparts in the private sector," Singh told PTI when asked about the decision.
"It is a historic decision by the Cabinet. It will further motivate employees to work," said Singh, Minister of State for Personnel, Public Grievances and Pensions.
There are 47 lakh central government employees and 53 lakh pensioners.
Senior officials in Personnel Ministry said the implementation of the pay panel will help in retaining talents in government jobs who sometime join private sector for better salary and other facilities.
Some IAS and IPS officers have left government jobs midway to join corporates.