7th Pay Commission: Hike in Minimum Pay, Fitment Factor Likely to be Delayed Further; Here’s Why

| January 6, 2018

New Delhi, Jan 5: The central government employees have been waiting for a hike in minimum pay and fitment factor beyond the recommendation of the 7th Pay Commission or 7th CPC since June 2016. Although the employees are hopeful that the government will approve a hike in minimum pay and fitment factor beyond the recommendation of the 7th Pay Commission in 2018, the decision is likely to be delayed.








The government had approved recommendations of the 7th Pay Commission on a hike in salary and allowances in June 2016 and July 2017 respectively. The 7th Pay Commission had recommended a 14.27 percent hike in basic pay — the lowest in 70 years, raising minimum pay from Rs 7,000 to Rs 18,000 month. However, the central government employees have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times from 2.57 times.




The decision to hike minimum pay and fitment factor beyond the recommendation of the 7th Pay Commission may be delayed further as the government is yet to constitute a high-level committee. If media reports are to be believed, the government is likely to form a high-level committee to fix new pay structure beyond the recommendation of the 7th Pay Commission. The high-level committee will submit a report on the salary hike in six months. However, the committee hasn’t been formed yet.




Besides, the Lok Sabha on Thursday passed a bill to hike the salaries of judges of the Supreme Court and High Courts in line with the recommendations of the 7th Pay Commission. The development may further delay the announcement of higher minimum pay as it lets the government save money. Earlier, a source within central government employees’ union said the government deliberately delayed the hike in minimum pay and saved nearly 26,000 crores. The government may delay the implementation of the higher minimum pay to save more money.

India spends a whopping Rs 10.18 trillion on salaries of the central and state government employees, including the amount spent on implementation of the 7th Pay Commission’s recommendations. This is a staggering 8.15 per cent of the country’s GDP. The 7th Pay Commission was poised to have cost the Centre Rs 1.02 lakh crore.

The central government employees have warned the government to go on indefinite strike if it doesn’t raise minimum pay and fitment factor beyond the recommendation of the 7th Pay Commission.

Category: News, Seventh Pay Commission

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