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25% pay hike for govt staff? PC will give some hints today

Government employees, get ready to hear the first word on the much-awaited pay hike!

While the Sixth Pay Commission is yet to finalise its report and it's likely to come in only in April, Union Finance Minister P Chidambaram is expected to provide the first indications on the Union Budget on Friday as to what kind of a pay increase is on the cards for the 40 lakh government employees.

The government on Wednesday said the Sixth Pay Commission would submit its report by April 4.

The Railway Budget has made an ad hoc provision of Rs 5,000 crore for 2008-09 to meet additional liability towards employees and pensioners in anticipation of the Pay Commission recommendations. The Union Finance Minister is also going to announce a similar provision in the Union Budget.

Reading from the Railway Budget provision of Rs 5,000 crore for 14 lakh employees on an estimated current outgo of Rs 46,379 crore, analysts say the pay hike for the government employees could be in the order of 20-25 per cent.
Source : http://www.ibnlive.com/news/25-pay-hike-for-govt-staff-pc-will-give-some-hints-today/60086-3.html