7th Pay Commission: Latest news today, Check updates on pay hike

The note ban and GST have taken a beating on the economy. Questions have been raised about the same during the ongoing poll process.

For those awaiting for latest updates on the 7th Pay Commission, the latest news is that the hike in basic minimum pay would take place after the Gujarat and Himachal Pradesh assembly elections.

Many are busy with the ongoing poll process and the government would also weigh in the pros and cons before making a decision on the pay hike, sources say.

Hike after elections

The note ban and GST have taken a beating on the economy. Questions have been raised about the same during the ongoing poll process. The government would want to weigh in the response to these two issues before taking a final call on the matter. This would ideally mean that no concrete decision or announcement would be made unless the elections in Gujarat and Himachal Pradesh are over.

GST, note ban key factors

The response that the BJP would get to its decisions on note ban and GST are two crucial factors for the hike of Central Government employees. The Finance Minister had promised a pay hike after the Cabinet cleared the recommendations. What is to be seen is whether the government would go beyond the recommendations of the pay panel which had suggested a Rs 18,000 pay hike. The Finance Ministry had said that after these decisions there was a slow down and hence there were no adequate funds.

Latest on arrears

While there is still a lot of debate on what exactly the pay hike would be, it is now confirmed that there will be no arrears. Sources say a pay hike with arrears would put too much burden on the exchequer. The debate on whether the pay hike would be Rs 21,000 or Rs 26,000 is still being debated. Sources say that most likely the pay hike would be at Rs 21,000 and it would be variable starting 2018 onwards.

7th Pay Commission fitment factor

The 7th Pay Commission while recommending a pay hike had fixed the fitment factor at 2.57. The Government has decided to increase to 3 times which means the pay hike would be at Rs 21,000. However CG employees say that they want the fitment factor raised further so that the pay hike would be at Rs 26,000.

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