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Thursday, December 28, 2017

7th Pay Commission Expenditure on Wages

New Delhi, Dec 26: India spends around  Rs 10.18 trillion on salaries of the central and state government employees, including the amount spent on implementation of the 7th Pay Commission’s recommendations. This is a  8.15 per cent of the country’s GDP. The 7th Pay Commission to have cost the Center Rs 1.02 lakh crore against the Central Government revenue of about 20 lakh crore. 

Out of the total GDP of India amounting to 124.88 trillion, Rs 10.18 trillion is spent on paying salaries, according to a note submitted by the Department of Personnel and Training (DoPT) to a parliamentary panel. The report said the implementation of 7th Pay Commission‘s recommendations added just  extra 0.7 per cent burden on the GDP and a yearly burden of 102,000 crores. The salaries of 10 million central government employees account for 12.6 per cent of the central government’s total expenditure,  which is very minimal .

The government approved the 7th Pay Commission recommendations for its employees with higher minimum basic pay from Rs 7,000 to Rs 18,000 per month in June last year. The 7th Pay Commission had recommended a 14.27 percent hike in basic pay is  the lowest in 70 years. 

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