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7th Pay Commission: Increasing salaries won’t have material impact on inflation say FinMin officials

By Vicky Nanjappa
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    There has been disappointing news on the 7th Pay Commission. While the government, on one hand, has made it clear that there would be no increase in fitment factor and basic minimum pay, the Central Government employees have decided to take the agitation route if their demands are not met.

    7th Pay Commission: Increasing salaries won’t have material impact on inflation say FinMin officials

    Although in the Lok Sabha the government said that there is no proposal to increase the pay, the issue does not seem to be dead. Recent discussions held within the Finance Ministry assessed the situation. It was found that an increase in the fitment factor and basic minimum pay would not have any material impact on inflation.

    This observation may raise the hope of CG employees to a certain extent, but the uncertainty would continue for some more time. If at all the government changes its mind, it would increase the basic minimum pay from April onwards. However the catch is is that it would impact only the lower level employees.

    On the other hand, Lok Sabha Speaker, Sumitra Mahajan announced the formation of a committee to propose a revision of the pay structure and allowances of both Lok Sabha and Rajya Sabha secretariat employees.

    The 7th Pay Commission did not make any recommendations about their salaries. A six-member panel under Murli Manohar Joshi will look into the issue.

    Meanwhile, the CG employees are planning a massive agitation if their demands are not concerned. NJAC's Shiv Gopal Mishra, who led the negotiation over 7th Pay Commission on behalf of central government employees, expressed dissatisfaction over the government's decision and said the struggle for higher minimum pay will continue. The employees are agitated and there is a lot of disappointment. I can assure that the demand to raise the minimum pay has not been forfeited. If negotiations do not give us a solution, then an agitation would, he also said.

    Minister of State for Finance, P Radhakrishnan had said in the Lok Sabha that the government was not considering any minimum pay hike. The minimum pay of Rs 18,000/- per month and fitment factor of 2.57 is based on the specific recommendations of the 7th Pay Commission in the light of the relevant factors taken into account by it.

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