There have been several updates and developments on the issue concerning the 7th Pay Commission. While the news on gratuity and HRA were the big updates, the bigger news was regarding the hike in basic minimum pay.
The government is set to increase the basic minimum pay. However it is unlikely to give arrears on the same. The issue is still under consideration government sources say.
Latest on arrears:
The government which will hike the minimum pay from Rs 18,000 to Rs 21,000 has however not decided to give arrears on the same. In June the Ministry had fixed the minimum pay at Rs 18,000. While the fitment factor considered at that time was 2.57, with the increase minimum pay it would have to be at 3. The Finance Ministry says that it is eager to hike the minimum pay. However the arrears would not be paid. Once hiked it would be effective from January 1 2018. Moreover the matter will be placed before the Cabinet in the month of January. The decision was taken after it was felt that the minimum pay was not good enough for CG employees. The employees have however been demanding that the minimum pay be raised to Rs 26,000 which means the fitment factor would have to be at 3.68.
Latest on minimum pay hike:
As per the ongoing process, sources say that the minimum pay hike will be effective from January 2018. There are still some processes remaining to be completed. This would take at least another two to three months, officials also said. Currently there is work on increasing the fitment factor. The fitment will have to be raised from 2.57 to 3 times. To look into these issues the National Anomaly Committee had been formed. The committee has been in touch with officials and is studying the issue from all angles. For the minimum pay hike to be raised, the NAC would have to approve the same. The NAC would have to vote in majority and sources say that this will surely take place. The NAC is likely to meet in October.
Latest on fitment factor:
While CG employees have been demanding for a minimum pay hike of Rs 25,000, the government is most likely to give Rs 21,000. Government officials say that the final minimum pay hike is set to be at Rs 21,000 and the NAC too is of a similar view. The government is planning on raising the fitment factor 3 times from 2.57 as a result of which the basic minimum pay would go up from 2.57 times to 3.
What 7th Pay Commission had said:
The government approved the 7th Pay Commission's recommendations of the minimum from Rs 7,000 to Rs 18,000 per month while the maximum pay from Rs 80,000 to Rs 2.25 lakh per month and Rs 2.5 lakh for the cabinet secretary-the senior-most civil servant and a fitment factor of 2.57 has been proposed to apply uniformly for all employees.