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7th Pay Commission: Minimum pay hike to be proposed in December

New Delhi: A monthly pay rise of Rs 18,000 to Rs 21,000 is likely to be recommended by the National Anomaly Committee (NAC) in this December for low-paid Central government employees, in effort to lift their incomes.

FM Arun Jaitley's pay hike assurance on June 30 had prevented several central government employees’ unions to go indefinite strike from July 11, 2016.
FM Arun Jaitley’s pay hike assurance on June 30 had prevented several central government employees’ unions to go indefinite strike from July 11, 2016.

And in a nod to tough economic conditions, the NAC may suggest fitment factor 3.00 times instead of 2.57 times of sixth pay commission’s basic pay.

The central government employees will have to wait till April next next year for their raise.

That’s according to Finance Ministry sources.

The sources said raising the minimum pay to Rs 21,000 – which came into effect at the start of the month of April next year will make it even more challenging for the Union government.

However, the government will hike the pay as the Finance Minister Arun Jaitley made promise to raise minimum pay of the central government employees in a meeting with the central government employees’ unions leaders on June 30, 2016, day after the cabinet approval of the 7th Pay Commission’s recommendations.

“The pay hikes should be good news for the lowest-paid employees, who struggle to afford housing, transportation and education in one of the most expensive regions in the nation,” a central government employees unions leader said.

According to the leader, a higher minimum pay will help to reduce poverty and improve the quality of life for government employees.

Expressing dissatisfaction over the cabinet nod of the recommendations of the 7th Pay Commission on June 29, 2016, various central government employees’ unions had threatened to go on an indefinite strike from 11 July, 2016.

Jaitley’s assurance on June 30 had prevented several central government employees’ unions to go indefinite strike over pay hike from July 11, 2016.

Consequently, Jaitley formed National Anomaly Committee (NAC) in September, 2016 to look into the pay irregularities arising out of the 7th Pay Commission’s recommendations.

“The NAC is likely to go ahead for hike in minimum pay Rs 21,000 from Rs 18,000 from the existing 2.57 to fitment factor 3.00 and its report will be submitted in December ” the sources told The Sen Times.

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

Earlier, the government gave nod the 7th Pay Commission proposal of minimum basic pay from Rs 7,000 to Rs 18,000 per month while the maximum basic pay from Rs 80,000 to Rs 2.5 lakh with a fitment factor of 2.57 times uniformly of sixth pay commission’s basic pay.

TST
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