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7th Pay Commission: Pay hike to be included in budget

New Delhi: Central government employees can expect their salaries to increase next financial year, after the government economic managers are ready to allot their hike salary fund in the proposed Union Budget 2018-19 but this will be announced later in the year 2018-19.

FM Arun Jaitley is likely to make proper announcement on hike in pay.
FM Arun Jaitley is likely to make proper announcement on hike in pay.

“Fund is likely to be allotted in the Budget 2018-19 for salary increase of central government employees especially lower-level employees up to the pay matrix level 5. It’s subject to clearance by the Finance Minister Arun Jaitley and the Cabinet,” said an official, who is involved in Budget-making process, on Saturday before ‘Halwa Ceremony’ on condition of anonymity.

Jaitley promised in July, 2016 in Rajya Sabha to hike pay of the central government employees beyond the suggestion of the 7th Pay Commission.

But it had been said there is no budget for it this financial year 2017-18.

The official told  The Sen Times, “the 7th pay panel recommended minimum pay from Rs 7,000 to Rs 18,000 per month while the maximum pay from Rs 80,000 to Rs 2.5 lakh with a fitment factor of 2.57 times uniformly of basic pay of 6th pay commission and the recommendations got the Cabinet nod on June 29, 2016.

The unions were demanding 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 that a High Level Committee would look into the increasing pay and fitment formula.”

However, instead of the High Level Committee, the government formed the National Anomaly Committee (NAC) in September 2016 to resolve pay anomalies.

The NAC met many times but didn’t recommend to hike pay and fitment formula because the Department of Personnel and Training (DoPT) issued a letter on October 30, last year stating that the demand for increase in minimum Pay and fitment formula do not appear to be treated as anomaly, therefore, these do not come under the purview of NAC.

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

Asked to elaborate on the matter, the official replied: “Ajay Mittal, Secretary, DoPT, who is the head of NAC, has to talk to the Finance Minister Arun Jaitley about this. After that, the proper announcement in this regard will be made by FM.”

To implement the pay hike, the proposal should be passed by the Cabinet for increasing the basic pay of central government employees upto the pay matrix level 5.

“The government is going to fulfill the promise of FM Jaitley to increase the salary of lower-level employees beyond the the 7th Pay Commission recommendations,” the official added.


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