Published On: Fri, Mar 16th, 2018

7th Pay Commission: Govt to plan minimum pay hike from April

New Delhi: – Government to plan to raise the minimum pay to Rs 21,000 from Rs 18,000, as promised by the Finance Minister Arun Jaitley in Rajya Sabha on July 19, 2016.

FM Arun Jaitley had promised for hike in pay in Rajya Sabha on July 19, 2016.

The moves, said a senior Finance Ministry official on condition of anonymity, who is a part of pay hike process beyond the 7th Pay Commission recommendations, which is expected to be approved in April.

The Department of Personnel and Training (DoPT) had already said through its letter October 30 that minimum Pay and fitment formula would not be treated as anomaly, therefore, these do not come under the purview of NAC, which are now mulled by the government to increase the pay of employees, who get salaries from pay matrix level 1 to 5, from April, ignoring the DoPT suggestion to protect Jaitley’s promise in Parliament.

It is also analysing whether to increase pay, to help government in 2019 general election, he added.

Some analysts are concerned the BJP government may hike the pay of central government employees to help it deal with votes of 2019 general election after BJP lost bypolls to all three Lok Sabha currently.

The official said the lowest paid employees will get pay Rs 21,000 from April instead of Rs 18,000 approved on June 29, 2016.
The lower-level employees with pay matrix level 1 to 5 will due to pay with fitment factor 3.00 times instead of 2.57 times of basic pay of 6th pay commission.

Earlier, The 7th pay panel recommended minimum pay Rs 18,000 per month while the maximum pay from Rs 2.5 lakh, with a fitment factor of 2.57 times of basic pay of 6th pay commission uniformly for replacing the 6th pay commission pay scales.

The central government employees unions demanded for hike fitment factor 3.68 and minimum pay above the current Rs 18,000 to Rs 26,000.

Finance Minister Arun Jaitley assured the unions on June 30, 2016 for looking into their core demand of increasing Pay and fitment factor.

Jaitley reiterated his commitment to hiking pay for the central government employees beyond the 7th Pay Commission recommendations in Rajya Sabha on July 19, 2016.

Accordingly, the government formed National Anomaly Committee (NAC) in September, 2016 to resolve pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

In the meantime, the DoPT issued above letter, which was not fetched fuel for the central government employees to pay hike.


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