Published On: Mon, Feb 12th, 2018

7th Pay Commission: Govt to turn pay hike dream into reality

New Delhi: The Modi government is working on a strategy to turn pay hike dream of central government employees into reality to help lower-level employees of pay matrix level 1 to 5.

The government is legally bound to comply with implementation FM Arun Jaitley’s announcement for hiking pay in Parliament on July 19, 2016.

A Finance Ministry official on condition of anonymity said government was committed to ‘pay hike’ of central government employees and is likely to turn lives of employees into better positions.

The official said, “government is seeing hike in pay with fitment formula 3.00 times of basic pay of 6th pay commission.”

The central government employees unions, however, have been pushing for ‘minimum pay’ of Rs 26,000 per month with fitment formula 3.68 times.

A union leader said he was skeptical that employees would see much benefit.

He cited report from the 7th Pay Commission, which was got cabinet nod on June 29, 2016, increased pay gap between lowest earning employees and top bureaucrats from 1:12 in 2006 to 1:14.

He added the pay gap should be made at least 1:12 for all employees.

He noted that the announcement of Finance Minister Arun Jaitley for hiking salaries of lower-level employees beyond the 7th Pay Commission recommendations, came just a few days after cabinet nod of pay panel proposal. Jaitley also reiterated his commitment in Rajya Sabha on July 19, 2016.

The official said government raised the minimum pay Rs 18,000 while the maximum pay from Rs 2.5 lakh for month with a fitment factor of 2.57 times of basic pay of 6th pay commission, which differ based on pay ratio, according 6th pay panel, but the government is mulling to make up pay gap between lower paid employees and top officers through the pay hike of employees, who are getting salaries from pay matrix level 1 to 5.

The official added that government is legally bound to comply with implementation FM Jaitley’s announcement in Parliament on July 19, 2016 for hiking pay, so the pay hike beyond the 7th Pay Commission recommendations for lower level employees will be implemented from April.

He also confirmed Finance Ministry is looking into the issue ignoring the DoPT letter on October 30, last year and is likely to take up the matter with the respective stakeholders.

TST

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