New Delhi, Nov 16: The central government employees might receive a hike in minimum pay beyond the recommendation of the 7th Pay Commission from April 2018 and the National Anomaly Committee (NAC) is expected to submit its report on higher minimum pay in December this year, sources in the Finance Ministry said. Union Finance Minister Arun Jaitley had agreed to raise minimum pay beyond the recommendation of the 7th Pay Commission and the process is underway to implement this, sources added.
The NAC meeting to discuss the hike in minimum pay beyond the recommendation of the 7th Pay Commission, scheduled for October, got postponed after the Election Commission announced dates for Assembly polls in Himachal Pradesh and Gujarat. The NAC is likely to hold a meeting in December and submit its report by 15 of the month, said a Sen Times report. The report will be further examined by the Empowered Committee of Secretaries headed by Cabinet Secretary P K Sinha and the Department of Expenditure.
The government has given nod to raise the 7th Pay Commission proposal of minimum basic pay from Rs 7,000 to Rs 18,000 per month while the maximum basic pay from Rs 80,000 to Rs 2.5 lakh with a fitment factor of 2.57 times. The central government employees, however, have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times from 2.57 times.
The higher minimum pay would be released from April 2018. Several reports earlier suggested that the government would raise minimum pay beyond the recommendation of the 7th Pay Commission from January. However, the sources in the Finance Ministry said the higher minimum pay will come into effect by April next year at the latest.
The government had approved a hike in salary and allowances as per the recommendations of the 7th Pay Commission 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 and raised minimum pay from Rs 7,000 to Rs 18,000 month.