7th Pay Commission: Minimum pay to be hiked Rs 21,000

New Delhi: Finance Ministry sources today said on condition of anonymity, that minimum pay of central government employees may be hiked Rs 21,000 from Rs 18,000 suggested by the 7th Pay Commission.

As people continue to suffer after demonetisation from November 9 on account of cash crunch, the Finance Minister Arun Jaitley compels to keep in abeyance the higher allowances till things normalize and it is likely to implement from January next.
National Anomaly Committee may agree to recommend the 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.

The sources came up with the remark while talking to us about hiking of pay scales of all central government employees and officials by the National Anomaly Committee than the 7th Pay Commission recommendations.

There is some scope to change in minimum pay to Rs 21,000 from Rs 18,000, which was approved by the cabinet, they added.

Replying to a question, the sources said, “The demands of central government employees over hiking minimum pay Rs 26,000, higher than the Rs 18,000 had approved by the cabinet on the 7th Pay Commission’s report, is likely not to be considered by the National Anomaly Committee on behalf of the government but they may agree to recommend the 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.”

However, economists have produced countless studies either supporting or disputing the wisdom of raising the minimum pay.

“The minimum pay of central government employees Rs 18,000 was made on recommendations of the 7th Pay Commission. But government will consider hiking it after discussions with all stakeholders,” Finance minister Arun Jaitley had earlier said in a meeting.

“Raising the minimum pay could also encourage central government employees to work harder and stay on the job longer. The government should treat its employees well tend to attract good employees and retain them longer,” a top central government employees’ union leader said.

The 7th Pay Commission had recommended the minimum from Rs 7,000 to Rs 18,000 per month while the maximum pay has been hiked 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.

The government had formed a 22-member National Anomaly Committee headed by Secretary, Department of Personnel and Training (DoPT) in September, 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

After due hearing and by majority vote of all its stakeholders, the National Anomaly Committee may recommend to hike minimum pay Rs 21,000 from Rs 18,000.