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India doles out big pay hike for gov't employees

Xinhua, June 29, 2016 Adjust font size:

The Indian government Wednesday doled out a big pay hike for all its employees and pensioners, a move aimed at providing an impetus to the sluggish demand scenario in the country's economy.

Sources said that the Indian Cabinet, chaired by Prime Minister Narendra Modi, approved the hike in salaries and allowances of the government employees as recommended by the 7th Pay Commission, and it is centered around a 14.27 percent hike in basic pay.

There are nearly 5 million government employees and 5.8 million pensioners in India, and the increase will be effective from January this year, the sources said.

With the hike, salaries and allowances of all government staffers will rise by at least 23.5 percent, and several senior government officials will now draw a salary higher than lawmakers. Those drawing pension will also get a hike in their retirement money.

However, the sources said that the highest pay for a government employee has been capped at 225,000 Indian rupees per month, excepting the country's top bureaucrat who will get 250,000 Indian rupees per month - much more than a parliamentarian. Endit