Major benefits to government employees
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Major benefits to government employees: Expected hike and increase in retirement age in Budget 2008
Budget 2008 is expected to bring good news for Government officials in India. As per the recommendations of the of the Sixth Pay Commission to the Ministry of Finance, the salaries of government officials are likely to be increased by 40% while retirement age is expected to be increased to 62 years.
The commission headed by Justice B.N. Srikrishna, has submitted the recommendations to the Ministry of Finance and the government is expected to implement those. This would be the last budget in the tenure of the UPA Government and so it would like to win the confidence of the government employees by means of this budget.
The Sixth Pay Commission set up the government has suggested a hike of 30-40% in basic pay of the central government employees in different sectors. In the fiscal year 2007 - 08, the expenditure pertaining to the pay and allowances of the central government employees of strength more than 3 lakhs, was around Rs 46,379 crores.
An increase in salaries is expected to be instrumental in retaining young civil service executives in government jobs. Without a significant hike, many such young employees might move out of government jobs to the private sector, where salaries are much higher.
It is also expected that an increase in the retirement age from the existing 60 years to 62 years has been included in the recommendations of the Sixth Pay Commission. In a presentation by the senior bureaucrats of the commission, it was shown that an increase in the retirement age would help the government in holding over its pension liabilities for two years.
This recommendation would be finalized by the Ministry of Finance, India. In the year 1998, the retirement age was raised to 60 from 58 years on the recommendation of the Fifth Pay Commission.
Previously, several ministries had asked the department of personnel & training about increasing the retirement age in certain categories. The Ministry of Finance had forwarded the proposal to the Pay Commission for their recommendations.
The Sixth Pay Commission set up the government has suggested a hike of 30-40% in basic pay of the central government employees in different sectors. In the fiscal year 2007 - 08, the expenditure pertaining to the pay and allowances of the central government employees of strength more than 3 lakhs, was around Rs 46,379 crores.
An increase in salaries is expected to be instrumental in retaining young civil service executives in government jobs. Without a significant hike, many such young employees might move out of government jobs to the private sector, where salaries are much higher.
It is also expected that an increase in the retirement age from the existing 60 years to 62 years has been included in the recommendations of the Sixth Pay Commission. In a presentation by the senior bureaucrats of the commission, it was shown that an increase in the retirement age would help the government in holding over its pension liabilities for two years.
This recommendation would be finalized by the Ministry of Finance, India. In the year 1998, the retirement age was raised to 60 from 58 years on the recommendation of the Fifth Pay Commission.
Previously, several ministries had asked the department of personnel & training about increasing the retirement age in certain categories. The Ministry of Finance had forwarded the proposal to the Pay Commission for their recommendations.
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