7th Pay Commission – Government Not Paying Salary Hike With Fitment Factor 3.68, but will hike Minimum pay, Says Report

| October 23, 2017

New Delhi, Oct 23: A media report has said that the central government is not giving in to the demand of employees to increase the minimum basic salary from Rs 18,000 to Rs 26,000 as it doesn’t have enough funds after its demonetisation and GST moves.








The central government employees unions are demanding an increase in the minimum basic pay. They also demand that the fitment factor is increased to 3.68 from 2.57 times. Sources said the government may increase the basic salary from Rs 18,000 to Rs 21,000 and fitment factor to 3 times.




A top Finance Ministry official told the Sen Times that the government was not in a position to accept their demand as it lost a lot of money due to demonetisation and GST. Such hike in pay may hamper the country’s economy by putting additional pressure on government exchequer.

“However government may come out with a decision in January in this regard in consultation with finance experts and political weighing its pros and cons after Gujarat and Himachal Pradesh elections results,” the source told the website.




The Indian economy has considerably slowed down due to demonetisation and implementation of Goods and Services Tax (GST). The GDP growth came down to 5.7 per cent in the first quarter of the financial year 2017-2018.

Source:- India.com

Category: News, Seventh Pay Commission

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