7th Pay Commission: The final one, no more ten year wait for salary hikes
Good news for Central Government employees and pensioners is on the way after they were all left disappointed and frustrated by the 7th Pay Commission.
The National Anomaly Committee which is set to meet in October will make a change in the fitment factor. Sources said that this process would then be examined by the Department of Expenditure following which it would be submitted to the Union Cabinet for final approval.
Over 50 lakh CG employees are waiting eagerly for this pay hike. However the question that is being asked is whether the rise in the fitment factor would be applicable to pensioners. The government is set to raise the fitment factor from 2.57 to 3 times. This will be a big step by the government since it approved the recommendations of the pay panel in June. If the 2.57 fitment factor is tinkered with fitment factor 3.00, then salary and pension will go up.
NAC is ready to change fitment factor
The National Anomaly Committee which has been studying the issue in detail will change the fitment factor. A majority of the stakeholders will vote in favour of rising the fitment factor from 2.57 to 3 times. This would hike the basic minimum salary from Rs 18,000 to Rs 21,000.
What about future hikes
With no 8th Pay Commission, the question is how will the government revise the pay of central government employees? Justice A K Mathur who headed the 7th Pay Commission said that the government must review the salary of central government employees every year looking into the data available based on price index. The commission had recommended that the pay matrix may be reviewed periodically without waiting for the long period of ten years.
7th Pay Commission the last, Aykroyd formula next
The 7th Pay Commission will be the last. The salaries of central government employees can be reviewed on the basis of the Aykroyd formula which takes into consideration the changes prices of the commodities that constitute a common man's basket. The Labour Bureau at Shimla reviews these changing prices of commodities periodically. This would mean that government employees will not have to wait for ten years for the formation of a pay commission to review their salaries and pension. All salary hikes and other revisions would take place every year taking into consideration the inflation that year.