7th Pay Commission: Good news confirmed, pay hike coming in January

The demand is to increase the minimum pay from Rs 18,000 to Rs 25,000.

The Union Government will hike the salaries of Central Government employees under the 7th Pay Commission from January onwards. It has been decided that the hike in minimum basic pay would be applicable from January 2018 onwards.

This would come as a major relief for 50 lakh central government employees who have been waiting for good news on the pay hike.

What government is planning

Finance ministry officials who are working on this say that the final decision would be taken in January. What is more important is that the government is committed to take a call on the matter. It has taken into consideration the woes of the Central Government employees who have been pleading for a pay hike.

Pay hike range

The demand is to increase the minimum pay from Rs 18,000 to Rs 25,000. While the government has made up its mind that the minimum pay would be at Rs 21,000, sources say that it is not finalised. The government may finally consider a pay hike in the range of Rs 21,000 and Rs 25,000. If the government finally decides that the hike would be Rs 21,000, then the fitment factor for the basic pay will be raised to 3 from 2.57 times.

Latest on NAC meeting

The National Anomaly Committee will have to meet and clear this in the first place. The meeting is expected to be held in October. Sources say that with the government firm on the pay hike, the NAC would also vote in that manner. The NAC meeting would require a majority vote to clear the proposal for a pay hike. Sources say that the NAC would vote in majority.

Why 7th Pay Commission was a disappointment

The 7th Pay Commission has been termed by CG employees as the worst in history. All pay commissions in the past had addressed grievances of the employees to a large extent. However this time around it disappointed on all fronts. It did away with several allowances, did not give a decent pay hike and also did not live up to its promise on the arrears on allowances.

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