Surge in Domestic Auto Sales: 7th Pay Commission Recommendations
Believe or not, 7th pay commission recommendations have a great impact on overall economy of the country. If the automobile company alone is considered, the recommendations have always affected the sector. The 6th pay commission had a huge impact on this sector as well. For instance when the sixth pay commission recommendations were issued in 2008, it boosted the Maruti sales up to 10 times to the government employees. This boost comes with the increase in the salaries of the government employees.
A recent survey shows that the automobile companies are anxiously waiting for 7th pay commission recommendations. Like in the earlier recommendations, the pay packages are likely to be improved. This salary increment increases the domestic automobile sales.
7th pay commission recommendations release!
Not just the automobile sector, many other industries are waiting for the recommendations desperately. The results were to be announced in August this year. But the union cabinet has extended the date to 31st December, 2015. These four months were added in the deadline by the government because many other issues plunged in the discussion. And the commission needed to revise many other things.
Past was a blast!
For government employees, the 7th pay commission is going to bring happiness like the sixth pay commission. Noteworthy is the fact that after 6th pay commission, the average pay increase of 35% was given to the government employees, which was enthralling. This was not it, just like 7th pay commission, the 6th pay commission also got delay. This delay also made things awesome for the employees because the government paid 30 months arrears to them as well. And guess what? According to a financial analyst, this time 7th pay commission is going to recommend up to 40% increase in government employees salaries.
Automobile industry in previous records
According to a news agency, whenever the government employees’ salaries are increased, the average automobile sales are increased as well. In the year 2008, when 6th pay commission recommendations were implemented, the percentage increase of passenger vehicles was 19.45% that is 2.22 million units. This percentage was even increased in the next year to 21.18% that is 2.8 million units.
If two-wheelers sales are considered, the percentage increased to 16.11% that is 9.7 million units in 2008. These sales were even boosted in the next year to 31.22% that is 12.73 million units in the next year. We can just hope that this year too proves in the best interest of the people.