7th Pay Commission – How Much Hike is Expected in Minimum Pay, Fitment Factor?

| June 9, 2018

Prime Minister Narendra Modi is likely to announce a hike in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission or 7th CPC on Independence Day, August 15, according to a report. After the government approved recommendations of the 7th Pay Commission, central government employees receive a 14.27 per cent hike in basic pay. The 7th Pay Commission minimum pay from Rs 7,000 to Rs 18,000 month with fitment factor 2.57 times.








Even since the government approved recommendations of the 7th Pay Commission, central government employees have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times. The government constituted the National Anomaly Committee (NAC) in September 2016 to resolve all matters related to the implementation of the 7th Pay Commission‘s recommendations. There were reports that the government had given a green signal to the NAC for raising minimum pay to Rs 21,000 from Rs 18,000 with fitment factor 3.00 times.




The government may increase minimum pay and fitment factor for low-level employees up to the pay matrix level 5. “Under pressure from the coming general election due by May 2019, the Modi government has indicated that it may hike pay of central government employees beyond the 7th Pay Commission recommendations, seeking to win the Lok Sabha polls because the government knows one government employees can persuade at least 100 voters for the party,” a government official was quoted as saying by Sen Times.

“The two announcements that Prime Minister Modi is likely to make in his speech from Red Fort on 15 August, the Independence Day for central government employees are an increase of pay and the raising retirement age to 62 years from 60,” he added. “It is not easy to lose an election because it can be very disappointing, so Modi led BJP government is likely to accept above two demands to appease 10 million central government employees including 5.2 million pensioners, most of them Hindus, have traditionally been supporters of BJP,” the official further confirmed.




Notably, the government, in March, said that it wasn’t considering raising minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission. “The minimum pay of Rs.18,000/- p.m. and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration,” Minister of State in Finance, P Radhakrishnan told Rajya Sabha in a written reply.

Category: News, Seventh Pay Commission

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