All eyes are on Finance Minister Arun Jaitley who has assured that the basic minimum pay for Central Government employees will be hiked beyond what the 7th Pay Commission had recommended.
Top sources say that Jaitley will keep up his promise. This would come up as a major relief for all CG employees and pensioners who have been awaiting good news regarding a pay hike.
Why Jaitley will keep his promise:
Had the Finance Minister not been interested in the pay hike, he would not have formed the National Anomaly Committee. Although the Cabinet had approved the pay panel's recommendations, the minister wanted a committee to be set up to study the anomalies rising out of it. Sources say that Jaitley will keep up his promise on the issue relating to the hike in basic minimum pay. During the various deliberations that the Union Finance Minister has held on the issue, he has always indicated that the hike in basic pay must go through.
Why government will hike the pay:
Ahead of the elections in 2019, the government would not want 50 lakh CG employees to be unhappy. There is already a great deal of frustration and anger among the employees. If the pay hike is not given, then the anger and frustration would grow and the government could lose out on a considerable number of votes. Moreover the government would want its employees to be happy so that they perform better and this could be told to the masses when the elections are held in 2019.
Two crucial meetings:
The all important meeting of the NAC is scheduled to be held this month. The issue of a hike in basic minimum pay will taken up during this meeting. A majority vote is what Central Government employees will be expecting during this meeting. The tentative date for this meeting is October 7th. Once the NAC approves the hike in basic pay to Rs 21,000 from Rs 18,000, it would be submitted to the Department of Expenditure. This would mean that the fitment factor will be raised to 3.00 from 2.57 times. The report would also be examined by by the Empowered Committee of Secretaries headed by P K Sinha who is the Cabinet Secretary. Following this the the matter would be placed before the Union Cabinet. The Cabinet meeting on the basic minimum pay is likely to be held in January.
Will 7th Pay Commission be the last:
The 7th Pay Commission only added to the frustration of the Central Government employees. Going by what the sources are saying there may be no more pay commissions in the future. This is would be good news for CG employees as the latest updates say that the pay would be reviewed every year from now onwards.