7th Pay Commission: Why GDP factor provides ray of hope for a pay hike

For those Central Government employees awaiting good news on the 7th Pay Commission, there could be a small ray of hope. The 50 lakh employees are expecting a hike in the basic minimum pay as well as a rise in the fitment factor.

There is strong speculation, that an announcement could be made in August. However there is no confirmation on that. Several analysts claim that a strong quarterly growth could bring some good news and cheer for the CG employees.

India'S Gross Domestic Product (GDP) have exceeded the estimates by analysts. The fourth quarter ended with a growth of 77 per cent which is at an 18 month high. This development could also have an impact on the 7th Pay Commission and the hike, analysts feel.

This performance has led to India becoming one of the fastest growing economies. Experts say that these quarterly figures are impressive and this is what could lead to the optimism of the CG employees. It may be recalled that their hopes were dashed when the Government had said in Parliament that there was no discussion on regarding the 7th Pay Commission.

However the CG employees are latching on to the hope as Finance Minister, Arun Jaitley had promised to hike the basic minimum pay beyond the recommendations of the 7th Pay Commission.