If one works for a government sector, there is one discontent that the job offers limited income and is much less than what the private jobs offer. It is this discontent that is given as an excuse for indulging in corruption. The fifth pay commission will wipe out this excuse once and for all.
The seventh pay commission was constituted last year to revise the salaries and allowances of the central government employees. It has submitted its report recommending the hike in salary by 23.5{4aae73461effa9263855888e11b82afb29be8624bd70156d49c18cab7ecb130d}. Besides salary, the government employees also get hefty allowances, which have also been revised. Though the salary hike appears only 23.5{4aae73461effa9263855888e11b82afb29be8624bd70156d49c18cab7ecb130d}, the real hike in total compensation will be more than double. For instance, the minimum pay for a government employee has been revised from Rs 7000 to Rs 18000, a hike of more than 250{4aae73461effa9263855888e11b82afb29be8624bd70156d49c18cab7ecb130d}. Similarly, a soldier at the bottom of the hierarchy will receive close to Rs 22000 against the prevailing salary of Rs 8500 (approx.). The commission has also provided for the significant hike for Pensioners.
Once implemented, the burden on the public exchequer will be more than One Lakh Crore. However, this time the hike will come into effect from 1st January 2016 and, therefore; there will be no arrears to be paid to the beneficiaries. The increment will increase the disposable income in the pocket of its employees. This may reflect in more buying of the commodities like car and consumer durables. Thus, it is good news for the companies selling various goods. It is hoped that this hike will discourage the government employees from seeking more money in the form of bribes.