Published On: Mon, Oct 23rd, 2017

7th Pay Commission: Note ban, GST hit pay hike hard

New Delhi: Central government employees are suffering from double whammy in the wake of ‘notebandi’ and goods and services tax (GST) to get hike in their pay beyond 7th Pay Commission recommendations.

FM Arun Jaitley had promised to hike minimum pay after discussions with all stakeholders.

FM Arun Jaitley had promised to hike minimum pay after discussions with all stakeholders.

The central government employees unions hit out at the Narendra Modi government for taking decisions like note ban and the GST roll-out “without any preparation” which “affected the backbone” of the country’s exchequer.

“The pace of economic growth has been very slow since 2016. Demonetisation was announced at the time when economy was already shrinking, people were trying to recover from the notebandi blow but government announced GST. GST is proving dipterous for people. So, hike in pay of the central government employees has also been affected by notebandi and GST,” they said.

Finance Minister Arun Jaitley had assured to hike minimum pay for the central government employees day after the cabinet approval of the 7th Pay Commission’s recommendations, June 30, 2016, when he had met representatives of several central government employees’ unions in home minister’s house with other two cabinet ministers—Rajnath Singh and Suresh Prabhu.

The assurance had prevented several central government employees’ unions to go ahead with the indefinite strike starting July 11, 2016.

Jaitley had promised to hike minimum pay after discussions with all stakeholders and he has formed National Anomaly Committee (NAC) in September, 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

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

“The government is not now in a position to accept their demands because a lot of money is being lost on notebandi and GST. So hike in pay costs for government exchequer will hamper the country’s economy now,” a top Finance Ministry official, who did not wish to be named told The Sen Times.

“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,” he said.

“The government is likely to go ahead for hike in minimum pay Rs 21,000 from Rs 18,000 with fitment factor 3.00,” the official added.

“If the 2.57 fitment formula is tinkered with 3.00, then salary and pension in general for all segments of employees will go up,” he assured.

TST

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