7th Pay Commission: Will Government Approve 17 Per Cent Hike in Minimum Pay?

| October 20, 2017

New Delhi, Oct 20: Though there is no official announcement, media report suggested that the government is considering to hike minimum pay beyond the recommendation of the 7th Pay Commission of 7th CPC. The 7th Pay Commission, led by Justice AK Mathur, raised minimum pay from Rs 7,000 to Rs 18,000 per month and fitment factor to 2.57 times, which was approved by the Cabinet on June 28 last year. However, the central government employees expressed dissatisfaction over the hike in minimum pay.

While the government is tight-lipped about raise in minimum pay beyond the recommendation of the 7th Pay Commission, sources in the Finance Ministry said the Union Minister Arun Jaitley will keep his promise of higher minimum pay. In a meeting with the representatives of the central government employees last year, Finance Minister Arun Jaitley Jaitley had assured them that their demand of raising minimum pay beyond the recommendation of the 7th Pay Commission would be considered.

“Since the Finance minister Arun Jaitley had promised to hike minimum pay after discussions with all stakeholders, efforts would be made to fulfil the same,” a Finance Ministry official was quoted as saying. If media reports are to be believed, the government is likely to approve 17 per cent hike over Rs 18,000 minimum pay approved under the 7th Pay Commission. The National Anomaly Committee (NAC), which was formed to resolve all matters related to the anomalies in the implementation of the 7th Pay Commission‘s recommendations, has been given a green signal by the government to raise the minimum pay.

The NAC may suggest hiking minimum pay to Rs 21,000 from Rs 18,000 – recommended by the 7th Pay Commission approved by the Cabinet. Fitment factor will be raised to 3.00 times from the existing 2.57 times. However, the central government employees have been demanding to raise minimum pay from Rs 18,000 to Rs 26,000 and fitment factor 3.68 times from 2.57 times. The Union Cabinet is expected to take up the issue of raising minimum pay beyond the recommendation of the 7th Pay Commission by the end of January 2018, which means the new year may bring some good news for the central government employees.

The NAC is expected to hold a key meeting this month before submitting the final report on 7th Pay Commission. The report will be further examined by the Empowered Committee of Secretaries and the Department of Expenditure. As far as the arrears are concerned, the government may not agree on this. The government doesn’t want to put an extra burden on exchequer with the release on arrears. The 7th Pay Commission was poised to have cost the Centre Rs 1.02 lakh crore.

Category: News, Seventh Pay Commission

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