Published On: Mon, Aug 6th, 2018

7th Pay Commission: Centre to raise minimum pay to Rs 20,000

New Delhi: Central government plans to raise the minimum pay to Rs 20,000 per month for its employees ahead of the general elections due by May 2019, a top official of the finance ministry told The Sen Times on condition of anonymity on Friday, paving the way for a possible win of Prime Minister Narendra Modi’s Party BJP in the elections.’

Pay hike, proposed by the government, is likely to help lift household spending of lower-level employees as sustained increase in retail inflation pose a threat to the poor employees.

Minimum pay would be hiked to Rs 21,000, media previously reported.

Modi’s government implemented the 7th Pay Commission recommendations of hike pay and pension for more than 10 million central government employees and pensioners in 2016. It was raised From January 2016. The current minimum pay was fixed at Rs 18,000 considering the fitment factor at 2.57.

The pay matrix, in place of erstwhile grade pay and pay band, starting from level-1 has minimum pay of Rs 18,000 per month and level-18, highest pay of Rs 2,50,000 per month has come into force from January 1, 2016.

The fitment factor is a figure used by 7th Pay Commission with which the basic pay in 6th Pay Commission is multiplied for basic pay of the 7th Pay Commission.

The lower-level employees were given 2.57 fitment factor while higher level employees got more than 2.57 fitment factor.

Hence, the central government employees unions are demanding to rise in minimum pay to Rs 26,000 and raising fitment factor to 3.68 but the government is not ready to accept their demand.

In the meantime, the Official Side of the National Anomaly Committee (NAC) agreed to address the anomaly of pay matrix in the NAC meeting on July 17, 2018, which gives hope to pay hike.

The government formed NAC in September, 2016 to resolve pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

The increase, proposed by the government, is likely to help lift household spending of lower-level employees as sustained increase in retail inflation pose a threat to the poor employees.

According to the official, the government employees, who receive salaries from pay matrix level 1 to 5, are expected to receive hike in pay with fitment factor 2.80 instead of 2.57 ahead of the general election, 2019.

TST

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