The government is likely to recommend a pay hike beyond the recommendations of the 7th Pay Commission. The pay hike if implemented would be applicable from April 1 2018 onwards.
While the Centre says that it is committed to improving the lives of the Central Government employees, there are many who are still skeptical about it.
The reason why many are skeptical is because the 7th Pay Commission which received the Cabinet's approval on June 29 2016 had increased the pay gap between the lowest earning employee and top bureaucrats from 1:12 in 2006 to 1:14. They feel that the pay gap ought to have been 1:12 for all employees.
However the government is of the view that the pay hike would sort out most of the problems. It may be recalled that Union Finance Minister, Arun Jaitley had reiterated his commitment on issue at the Rajya Sabha on July 19 2016. The government says that they are bound by the commitment given in the Rajya Sabha and hence the pay hike would be a reality.
On the anvil is a pay with fitment formula 3 times of the basic pay of the 6th Pay Commission. After the 7th Pay Commission recommendations, CG employees had demanded a minimum pay hike of Rs 26,000 with fitment factor 3.68.