7th Pay Commission: Latest on pay hike, Cabinet meet confirmed for January end

Central government employees have been demanding that their basic pay is hiked.

There is confirmation that the same Union Cabinet that approved with the 7th Pay Commission recommendations will meet at the end of January to decide on the pay hike.

This would mean that the basic minimum pay hike will be announced during the end of January. The commission had recommended the basic minimum pay to be at Rs 18,000 and this had angered and frustrated both the CG employees and pensioners.

Cabinet meeting in January end

Although no official date has been given for the meeting date, sources indicate it would take place in the last week of January. The Cabinet is meeting to clear the proposal made by the National Anomaly Committee.

Fitment factor

The NAC is set to meet in October to decide on the pay hike. It would suggest that the fitment factor be risen from 2.57 to 3 times. This would make the minimum salary Rs 21,000 as opposed to the existing Rs 18,000.

What will NAC decide

Central government employees have been demanding that their basic pay is hiked. Within the NAC, the thinking is that the basic pay should be hiked from Rs 18,000 to Rs 21,000. The CG employees however feel that the hike should be at Rs 26,000. The NAC however would have two choices. It could either hike the basic pay to Rs 26,000 or grant Rs 21,000 with arrears.

If the basic pay is hiked to Rs 21,000, then the employees would demand arrears from January 2016 onwards. For now, the government feels that the pay hike would be effective starting January 2017 and there would be no arrears. With the unions pushing hard, the NAC would be compelled to give one of the following.

7th Pay Commission discussion

Finance Minister Arun Jaitley has agreed that the basic minimum pay should go up. Facing flak for the shape that the economy is in, he would not want to anger 50 lakh CG employees. Many employees will thank him profusely, if he agrees to clear the NAC proposal to hike the basic minimum pay.

OneIndia News