Incredible news for millions of central government employees-a 5 percent additional hike in salary with the special bonus package is reportedly in the pipeline by the Modi government. This is a broader part of the move to boost morale among employees and counter economic inflation for economic relief owing to increased living costs.
Is It Going To Be A 5% Salary Hike Proposal?
A proposal of 5% on basic salary is said to be under active consideration in the Finance Ministry. In that case, it would affect about 47 lakh central government employees and, it is expected, would be implemented in the next financial quarter. This increase could either be part of some revision under 7th pay commission structure or could also be a bridge to the final implementation of the 8th Pay Commission in 2022.
Special Bonus Likely To Coincide with Festival Period
Not only this, but it is also said that a special bonus is in the air that will take care of the additional part of the income coming from major festivals like Diwali and Dussehra. The bonus is reported to pay a one-time payment in favor of and grouped like into categories Group B and Group C employees. If approved, the bonus shall go into credit by September 2025.
Effects On Pensioners
While the current working employees benefit mainly, under the central government scheme, the pensioners are also likely to benefit by getting similar types of induction in the Dearness Relief (DR) that usually follows the salary structure of the working staff, and is made especially for not allowing the retired personnel out of the financial security net cast by such increases.
Justification By Government
It is believed that the increment is given for counteracting the high raising inflation and thus enhancing domestic consumption. As stated by one senior official, “employee welfare and coupled with economic stability”, which alludes to the possible speedup with which the economy could get some activities going.
Last Decision Still Awaited
Although no official notification has yet been made, talks have reached advanced stages. The announcement, if made, would possibly take place during the first or second week of May 2025. Employee unions have welcomed the anticipated improvements but have been continuing with their demands, like fitment factor revision and DA arrears.
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