7th Pay Commission: Latest developments on basic pay hike

The fact that the pay hike would see CG employees drawing a minimum pay of Rs 21,000 may bring some cheer.

What is the latest development on the 7th Pay Commission? The National Anomaly Committee is set to meet this month to discuss the hike in basic minimum pay.

This would be followed with the submitting of a report to the Department of Expenditure. Once this is approved, then the matter would be placed before the Union Cabinet.

Latest developments on hike in basic minimum pay

Sources confirm that the government will raise the fitment factor to 3 times. This would mean the minimum pay of the Central Government employees will go up to Rs 21,000 from the existing Rs 18,000. The government has decided that the fitment factor would be raised to 3 times from 2.57 times.

This would come into effect from January 2018 onwards. There has been a long standing demand that the existing pay is not sufficient with the prices rising, it is only making matters worse.

Latest news on arrears

While the pay hike would bring about some cheer for CG employees, the bad news is that there will be no arrears. Once the hike is approved, the employees would have hoped that they would have got arrears as well. However the government is firm that the pay hike would be in effect from January 2018 and no arrears would be paid on the same.

Will basic pay be hiked to Rs 26,000

The fact that the pay hike would see CG employees drawing a minimum pay of Rs 21,000 may bring some cheer. They would have expected that the fitment factor is raised to 3.68 times. This would have meant that the CG employees get a minimum pay of Rs 26,000. While this is unlikely to happen, the good news is that the pay would be variable. The government had said that the variable pay is something that it is contemplating keeping in mind the fluctuating markets and inflation.

7th Pay Commission and Arun Jaitley’s assurance

The 7th Pay Commission had recommended a pay hike of Rs 18,000. However it is not the final word. The government said that it would hike the minimum pay after holding talks with all stake holders. The assurance was made by Arun Jaitley, the Finance Minister of India.

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