The fact that the Government in accordance with the recommendations of the Sixth Pay Commission,has increased the salaries of over 50 lakh Government employees, including defence personnel, by a minimum of 21% with effect from January 1, 2006 has elated the Government employees.

As reported,the Central Government employees would get their revised salaries from September 2008 onwards.The Government has to pay Rs 29,373 crore as arrears and this would be paid in two instalments.According to the plans,40% of the amount will be given in this fiscal year and the rest will be doled out next year.

This salary hiking bout will add an estimated extra Rs 17,798 crore per annum to the expenditure of the central Government.Although the Finance Minister Mr P Chidambaram ruled out the possibility of failure of meeting the budget deficits,the Prime Minister’s Economic Advisory Council has raised a red flag regarding the effect of this decision on the ability of the Government to meet deficit targets.

The Government took the liberty of modifying the recommendations of the Sixth Pay Commission (SPC) by increasing minimum entry level salary of a government employee to Rs 7,000 against Rs 6,660 as recommended by the Pay Commission. Puducherry Chief Minister N Rangasamy affirmed today that his government would implement the revised wage structure shortly.