The Economy Survey for 2015-16 tabled in the Parliament today said increase in wages under the Seventh Pay Commission are unlikely to destabilise prices and will have little impact on inflation.
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The Seventh Pay Commission has recommended that government wages and allowances be increased significantly, and full implementation of this pay award-which the government will decide on-would add about half percent of GDP to the Centre's wage bill.
As per reports, the P. K. Sinha-headed Empowered Committee of Secretaries will submit its report to Finance Minister Arun Jaitley by April end, as the implementation cell of the Pay Commission is looking into the recommendations. After processing the report, it will be sent to Empowered Committee in April.
Pay Commission recommends three percent annual increment and 24 percent hike in pension for central government staffers.
Meanwhile, the Economic Survey emphasized that the Indian economy would continue to grow more than 7 percent for the third year in succession in 2016-17 helped by a normal monsoon, despite global meltdown.
