Volkswagen targets govt employees with 7th Pay Commission salary hike

The 7th Pay Commission recommendations has left carmakers salivating for long. Maybe now the time has come for them to make a killing. 

In an advertisement targetted at central government employees who are eligible to get the benefits of higher pay under the 7th Pay Commission recommendations, German carmaker Volkswagen has released an ad offering these customers a special deal. 

Volkswagen has targeted government employees who have seen a pay hike through the 7th Pay Commission in its latest print ad. The offers will be available on the VW Polo, Ameo and Vento.

In a campaign called 'VolksCarnival' the automaker has offered exclusive added benefits for all government employees (central and state). All the employees have to do is to get their photo ID when availing the offer.

Some of the benefits listed include Ameo available at Rs 5.14 lakh and Vento and Polo at 5.99% interest.

According to the 7th Pay Commission the salaries of central government employees are set to increase by 23.55% effective from January 1, 2016.

The Cabinet Committee on Economic Affairs (CCEA) has hiked the gratuity cap for government employees from Rs 10 lakh to Rs 20 lakh.

The minimum wage now for government employees will be Rs 18,000 from the Rs 7,000 previous.

Apart from the large hike in salaries, the government employees will also be getting a big lump-sum payment due to arrears from January 2016 to the current month.

This is the reason automobile companies have been trying to woo government employees.

For instance, carmakers such as Maruti Suzuki expects to achieve an over 25% growth in sales due the 7th Pay Commission, with central and state government employees contributing nearly 17% of its total sales volume.

Hyundai too has been wooing customers through its Pride of India offer where it offers government employees an additional benefit up to Rs 7,000 apart from other offers.