Govt likely to implement 7th Pay Commission award around September-October
The Central government employees will have to wait till September-October to get higher salaries under the 7th Pay Commission.
As per a Financial Express report, government is expecting that higher salaries released around the festival period starting with Durga Puja and Diwali will boost consumption, which will have a multiplier effect on the economy.
Though the employees will get arrears with retrospective effect from January 1, no retrospective arrears in allowances will be given. With the move, the exchequer would be able to save around Rs 11,000 crore.
The commission had estimated the additional outgo in FY17 due to its award at R73,650 crore.