7th Pay Commission: There is good news on its way, but it may not be on expected lines
New Delhi, June 29: Even as Central Government employees await good news on the 7th Pay Commission, there are reports that suggest that there could be a hike in the basic minimum pay.
It is a fact that after taking over as the Finance Minister, Nirmala Sitharaman had a briefing regarding the pay panel. The issue was discussed between her and officials, but there has been no confirmation that a pay hike would make its way into the Union Budget 2019.
It has been a long standing demand by the CG employees to increase the basic minimum pay from Rs 18,000 to Rs 26,000. Sources tell Oneindia that the demand does make sense and the government would be seriously contemplating taking up their demands.
There are various reasons why the government could consider this demand. First and foremost, it would keep the employees happy, which would mean that they would work better. Secondly if the basic minimum pay is hiked then it would enhance spending as a result of which money would come into the market. This would help better the economy, which is at the moment struggling.
Also one must take into the account the recent decision by the RBI to cut the repo rate by 0.25 basis points on June 6. This decision was taken after a three day meeting of the Monetary Policy Committee.
The source said that there will be some good news for sure, but it may not exactly what the CG employees are expecting. There would be some amount of increment and that is confirmed, the source added.
The 7th Pay Commission had recommended a pay hike of Rs 18,000. The CG employees are demanding a hike in basic minimum pay of up to Rs 8,000 with an increase in the fitment factor by up to 3.68.