Published On: Wed, Sep 13th, 2017

7th Pay Commission: New year, new minimum pay

New Delhi: The central government employees, those fighting for a higher minimum pay have cause to celebrate, as the start of 2018 means the government raising the minimum pay go into effect from January 2018, a Finance Ministry official involved with the process had told The Sen Times on condition of anonymity.

National Anomaly Committee is likely to give its nod to minimum pay Rs 21,000 with raising fitment factor 3.00 times from 2.57 times at the behest of the FM Arun Jaitley.

National Anomaly Committee is likely to give its nod to minimum pay Rs 21,000 with raising fitment factor 3.00 times from 2.57 times at the behest of the FM Arun Jaitley.

Additionally, the government is likely to raise fitment factor 3.00 times from 2.57 times approved by the government based on the pay commission recommendations.

If the 2.57 fitment factor is tinkered with fitment factor 3.00, then salary and pension in general for all central government employees will go up.

Efforts to raise the minimum pay of central government employees beyond Rs 18,000 were made a day after the cabinet cleared 7th Pay Commission award, and as the movement has gained momentum—the current target for many central government employees unions and some economists is minimum pay Rs 21,000—the debate over whether raising minimum wage is a good idea will likely become even more heated in 2018.

On the side for raising minimum pay, central government employees unions’ leaders argue that the current minimum pay Rs 18,000 is not enough to live on. There’s also the argument that raising it might also be beneficial for closing the pay gap, as the lowest earning employees are more likely to hold higher minimum pay jobs.

The raising minimum pay helps individuals with low pays much more than it helps impoverished families. This is the camp that believes the issue of inequality is better served by raising the minimum pay.

The government approved the 7th Pay Commission’s recommendations of the minimum from Rs 7,000 to Rs 18,000 per month while the maximum pay from Rs 80,000 to Rs 2.25 lakh per month and Rs 2.5 lakh for the cabinet secretary—the senior-most civil servant and a fitment factor of 2.57 has been proposed to apply uniformly for all employees.

The central government employees unions are demanding for hiking minimum pay Rs 18,000 to Rs 26,000 and the and asked to raising fitment factor 3.68 times from 2.57 times.

Accordingly, National Anomaly Committee headed by Secretary, Department of Personnel and Training (DoPT) has been formed in September, 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

The official said, “the National Anomaly Committee is likely to give its nod to minimum pay Rs 21,000 with raising fitment factor 3.00 times from 2.57 times at the behest of the Finance Minister Arun Jaitley. An announcement on the higher minimum pay is expected soon from the government and it will be implemented from January, 2018.”

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