7th Pay Commission: Why Modi govt will have to hike minimum pay

Government officials part of the process say that they are trying to implement the basic minimum pay hike by January 2018.

The Narendra Modi Cabinet which approved the recommendations of the 7th Pay Commission is now tasked with increasing the minimum pay for lakhs of Central Government employees.

It is a big task for the government, but some feel that it has to be done. The CG employees are just not happy with the minimum pay of Rs 18,000 and have been demanding that it be hiked to Rs 26,000.

Big challenge ahead

Government sources say that a committee is looking into the grievances of the CG employees. It will need to be done sooner or later. We are not speaking about a few thousand people here. There are lakhs of employees and the minimum pay hike as recommended by the pay panel is not sufficient for them. The government is taking into consideration various factors and problems of the Central Government employees.

Important for 2019

The government would also bear in mind the 2019 elections. If the CG employees are given a good pay hike then they would back the government. Moreover if the financial stress on the employees is high, they may not perform well. The next two years is very crucial for the government. In order to roll out reforms, the government needs the backing of the employees. If the employees are unhappy and continue to suffer financial stress, then they will not be able to work which would then directly affect the government's functioning.

Trying to implement before 2018

Government officials part of the process say that they are trying to implement the basic minimum pay hike by January 2018. There is a lot of work on the background to ensure that the same is implemented and effective from January 2018. While some union leaders have said that nothing has been communicated to them, sources said that the same would be done once everything is ready. It would be improper to reveal the details when the process is underway, the source also said.

7th Pay Commission recommendations

The 7th Pay Commission had recommended a pay hike of Rs 18,000 from Rs 7,000. However the CG employees had demanded that it be hiked to Rs 26,000. The government would look into the issue and could finally fix the basic minimum pay at Rs 21,000. It must be noted that the government had made it clear that the basic pay of Rs 18,000 is not fixed and is variable.

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