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7th Pay Commission: Central pay matrix to get some changes

New Delhi: The central government employees upto the pay matrix level 5 will be entitled to get hike in pay beyond the 7th Pay Commission’s recommendation.

Finance Minister Arun Jaitley
FM Arun Jaitley had said in Rajya Sabha on July 19, 2016, “government will consider hiking PAY after discussions with all stakeholder.”

The employees above the pay matrix level 5, however, will continue to get the salaries, according to the pay panel recommendation, finance ministry officials said today.

Meanwhile, the officials said the government would issue a gazette on the new pay in the next fiscal year.

Talking to our reporters at central secretariat today, the officials said the government is likely to meet most of the demands of central government employees’ unions, and hoped they would not have any grievances now.

The officials told The Sen Times that all central government employees, who are low paid, would get the hike in pay from coming financial year.

On June 29, 2016, the cabinet approved the proposal of the 7th pay panel for replacing the 6th pay commission pay scales with a fitment factor of 2.57 times uniformly.

As per the existing system, central government employees get minimum pay Rs 18,000 per month while the maximum pay from Rs 2.5 lakh.

The officials said there is discrimination in the treatment being given by low salary to low paid employees and higher ratio salaries to the top and middle-level employees. Subsequent pay commissions reduced the ratio of pay between lowest earning employees and top bureaucrats from 1:41 in 1947 to about 1:12 in 2006, while the 7th Pay Commission increases its 1:14.

They also said the pay gap should be made at least 1:12. The pay hike facility, however, will not be applicable to employees of the pay matrix level 6 and above, they added.

The officials said the finance ministry would settle the issue of pay hike facility for central government employees after discussions with the all stakeholders.

Earlier, the central government employees’ unions had demanded minimum pay Rs. 26,000 instead of Rs 18,000 and 3.68 fitment factor for all employees. Accordingly, they had threatened to go on an indefinite strike over pay hike on July 11, 2016.

The unions had called off their indefinite strike after they had met the Finance Minister Arun Jaitley on June 30, 2016 and he assured them that a High Level Committee would look into the increasing Pay and fitment formula.

So, the government formed National Anomaly Committee (NAC) in September to look into various pay related anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

According to the DoPT letter on October 30, 2017, minimum Pay and fitment formula do not appear to be treated as anomaly, therefore, these do not come under the purview of NAC.

However, Jaitley had said in Rajya Sabha on July 19, 2016, “The minimum pay Rs 18,000 was made on recommendations of the 7th Pay Commission. But government will consider hiking it after discussions with all stakeholders, once the proposal in this regard will be submitted to government.”

So, the officials in the Finance Ministry said that the government would like to review the DoPT letter in respect of employees who draw salaries from pay matrix level 1 to 5.


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