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  4. 7th Pay Commission: In Budget 2020, what's in there for central govt employees and what's NOT

7th Pay Commission: In Budget 2020, what's in there for central govt employees and what's NOT

7th Pay Commission: The PM Modi-led Central government introduced the Union Budget for FY 2020-2021 in Parliament on Saturday. Lakhs of govt employees awaited for some good news for them in the new budget 2020.

India TV Business Desk India TV Business Desk
New Delhi Updated on: February 03, 2020 8:04 IST
7th Pay Commission: In Budget 2020, what's in there for

7th Pay Commission: In Budget 2020, what's in there for central govt employees got and what's NOT

7th Pay Commission: Narendra Modi led Central government has introduced the Union Budget for FY 2020-2021 on Saturday. Finance Minister Nirmala Sitharaman presented Budget 2020 in Parliament. Lakhs of govt employees awaited for some good news for them in the new budget. But the Budget 2020 turned out to be a big disappointment for govt employees under the 7th Pay Commission. Central government employees were expecting DA (Dearness Allowance) hike or a pay hike.

Earlier, several media reports claimed that the Centre is likely to hike DA of the central government employees. However, there was no DA hike or Pay hike for central govt employees staffer under the 7th CPC in the Budget 2020. 

Budget 2020: What's there for central govt employees

Meanwhile, though there was no pay hike, Centre introduced new income tax slabs in the Budget 2020 to give major relief taxpayers. Finance Minister, Nirmala Sitharaman in her budget speech said that the tax rate of 30 per cent on income above Rs 15 lakh will continue. 

Citing an example, she said, a person earning Rs 15 lakh per annum would be able to save Rs 78,000 in taxes by opting for the new tax regime.

Under the new regime, taxpayers will pay 10%, 15%, 20% and 25% for incomes between Rs 5-7.5 lakh, Rs 7.5-10 lakh, Rs 10-12.5 lakh and Rs 12.5-15 lakh, respectively.

Budget 2020: what's not there for central govt employees

Though there is no pay hike, the new income tax exemption slabs are expected to be a major relief for the staffers.

Central govt employees have been long-demanding a hike in their basic minimum pay of Rs 26,000. The 7th Pay Commission had recommended a hike of Rs 18,000.

Also, the Central govt employees posted in Indian Railways were expecting that the Modi govt will provide medical and privilege pass facility to the dependent parents of these employees under the 7th Pay Commission.

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