Retirement Age may go up 62 Years in view of 7th CPC
7th Pay panel formed, retirement age may go up 62 yrs: Money Control
The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners.
Siddharth Zarabi
The national capital, home to a vast majority of central government employees, is headed for elections this November. And so are four other states, followed by the general elections sometime early next year. This, more than anything else, explains the central government's hurry to promise its employees higher wages.
The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners. The fact that this award is one more in a long list of expenditure-heavy pre-election programmes, will mean several consequences for India's finances. Back of envelope calculations suggest that even if the increments in the 6th pay commission were to be matched, the centre's wage bill could rise by up to Rs 1 lakh crore in 2016. But on the other hand, this payout will spark a surge in consumption starting that year. Why? The sixth pay commission award amounted to around 0.5 percent of GDP and a tidy sum was handed out as arrears in the start of 2008. That extra spending power meant that the ensuing slowdown was mitigated to some extent. This could play out again in 2016. Meanwhile, CNBC TV18 learns that the proposal to extend the retirement age of central government employees by two years has received fresh impetus. A decision on this could be taken within a week or two, and would be the second major populist decision by the UPA to woo the urban middle class and the powerful government employee mass in Indian society.
Source: Money Control
http://www.moneycontrol.com/news/business/7th-pay-panel-formed-retirement-age-may-go62-yrs_956487.html?utm_source=ref_article
7th Pay panel formed, retirement age may go up 62 yrs: Money Control
The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners.
Siddharth Zarabi
The national capital, home to a vast majority of central government employees, is headed for elections this November. And so are four other states, followed by the general elections sometime early next year. This, more than anything else, explains the central government's hurry to promise its employees higher wages.
The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners. The fact that this award is one more in a long list of expenditure-heavy pre-election programmes, will mean several consequences for India's finances. Back of envelope calculations suggest that even if the increments in the 6th pay commission were to be matched, the centre's wage bill could rise by up to Rs 1 lakh crore in 2016. But on the other hand, this payout will spark a surge in consumption starting that year. Why? The sixth pay commission award amounted to around 0.5 percent of GDP and a tidy sum was handed out as arrears in the start of 2008. That extra spending power meant that the ensuing slowdown was mitigated to some extent. This could play out again in 2016. Meanwhile, CNBC TV18 learns that the proposal to extend the retirement age of central government employees by two years has received fresh impetus. A decision on this could be taken within a week or two, and would be the second major populist decision by the UPA to woo the urban middle class and the powerful government employee mass in Indian society.
Source: Money Control
http://www.moneycontrol.com/news/business/7th-pay-panel-formed-retirement-age-may-go62-yrs_956487.html?utm_source=ref_article
3 comments:
Now the Influencial services such as Armed Forces, IAS, IPS, IFS will start arm-twisting the Govt. These services did not even raise their voices to form senenth pay commission. Services for which pay commission is actually required neither have no influence nor any representatives. I feel Non-Organised Govt services fall under this category who have been long time neglected and needs prime attention during seventh pay commission. No Pay commission so far has specifically made significant contribution towards this services.
govt. may take decision to increase retirement age from 60 to 62 as the experienced employee will perform the office work expediently and seriously and guard the administrator for all sort of decision. It is the solution of financial crisis too. there are many vacancies which should be filled up from the young generation, so that there should not be any harmful to the young society and they will also trained by the experienced employees if the govt.will decide to increase the retirement age from 60 to 62. Increase the retirement age from 60 to 62 is required for those employees are joining after the age of 30 years and more.
govt. should increase the retirement age of central govt. employees.
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