7th Pay Commission: Minimum pay set to be Rs 21,000, latest updates

The indication is that once the government takes a decision on this, the same would be effective from January 1 2016.

After the implementation of the 7th Pay Commission recommendations, there is good news for Central Government employees. With the government contemplating a hike in minimum pay, it would relieve all Government employees.

The existing minimum pay is at Rs 18,000. Once the government decides to go ahead with the pay hike it would be at Rs 21,000.

What will be the pay hike

The government will increase the minimum pay to Rs 21,000. The demand was however to increase the minimum pay from Rs 18,000 to Rs 25,000. The government feels that this would help the low paid employees to a great extent. In addition to this the decision would also help eliminate poverty and stimulate the economy the government further feels. Finance Minister Arun Jaitley made a commitment to hike the minimum pay of central government employees beyond Rs 18,000.

How the fitment formula works

The minimum pay was fixed at Rs 18,000. In the last Pay Commission, the basic pay was Rs. 7,000. They multiplied it by 2.57 (fitment formula) and came to Rs. 18,000. We are demanding 3.68 fitment formula.

Effective date

The indication is that once the government takes a decision on this, the same would be effective from January 1 2016. It was decided that this was being done because the legislation would require an adjustment to the Consumer Price Index inflation measure.

7th Pay Commission recommendations unfriendly to economy

The Union Government employees union has been seeking a rise in the basic minimum pay. The unions have been saying that this would help the economy. If spending increases, then it would benefit the economy. The cabinet approved the Seventh Pay Commission's recommendations for central government employees on July 29 and have been implemented from January 1, 2016, which impacts some 48 lakh central government employees and 52 lakh pensioners.

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