7th Pay Commission: Government set to hike basic minimum pay

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

After the government cleared the recommendations of the 7th Pay Commission, it is set to increase the minimum pay. This would be effective January 1 2016.

The decision will be taken to because the legislation would require an adjustment to the Consumer Price Index inflation measure.

Minimum pay to be hiked

The Union Government employees union has been seeking a rise in the basic minimum pay. The unions have been saying that this would help the economy. If spending increases, then it would benefit the economy. The government is now contemplating an increase in the basic minimum pay effective January 1 2016.

What will be the rise

The demand by the unions is to increase the basic minimum pay from Rs 18,000 to Rs 25,000. Under consideration is those employees who work well but are low paid. The government feels that there would be no harm in increase the basic minimum pay if the lower paid employees work well. This would provide to solve employees' economic problems, eliminating poverty and stimulating the economy.

Fitment formula

Shivgopal Mishra, Convenor of National Joint Council of Action (NJCA) says that they have fixed the minimum pay at a meagre Rs. 18,000 in the 7th Pay Commission. In the last Pay Commission, the basic pay was Rs. 7,000. They multiplied it by 2.57 (fitment formula) and came to Rs. 18,000. We are demanding 3.68 fitment formula, he also said.

Government's commitment on 7th Pay Commission

The cabinet approved the Seventh Pay Commission's recommendations for central government employees on July 29 and have been implemented from January 1, 2016, which impacts some 48 lakh central government employees and 52 lakh pensioners. Finance Minister Arun Jaitley made a commitment to hike the minimum pay of central government employees beyond Rs 18,000.

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