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7th Pay Commission: Govt vows to hike pay from April, sources say

New Delhi: The salaries of central government employees will be raised beyond the suggestion of the 7th Pay Commission from April 1, according to sources familiar with the pay hike process.

FM Arun Jaitley asked his ministry to look into the issue of pay hike.

The sources said the change to the hike pay would affect “lower-level employees of pay matrix level 1 to 5.”

The hike had previously been given nod by the Cabinet on June 29, 2016 on the 7th Pay Commission recommendations.

The sources also said the Finance Ministry would soon begin to prepare draft proposal to lift the salaries.

The 7th pay panel had recommended for replacing the 6th pay commission pay scales with a fitment factor of 2.57 times uniformly.

The central government employees unions demanded for hiking minimum pay Rs 18,000 to Rs 26,000 and they also asked to raising fitment factor 3.68 times from 2.57 times.

Finance Minister Arun Jaitley assured the unions on June 30, 2016 for looking into their core demand of increasing Pay and fitment formula through a High Level Committee.

Jaitley reiterated his commitment to hiking pay for the central government employees beyond the 7th Pay Commission recommendations in Rajya Sabha on July 19, 2016.

Accordingly, the Department of Personnel and Training (DoPT) formed National Anomaly Committee (NAC) in September, 2016 instead of High Level Committee to resolve pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

However, DoPT letter on October 30, last year stating that the demand for hike in pay and fitment factor do not appear to be treated as anomaly, therefore, these do not come under the purview of NAC.

The sources said, “after mulling DoPT letter, Finance Minister asked his ministry to look into the issue of pay hike. Jaitley also directed the ministry to take up the matter with the respective stakeholders to get into the root cause of the problem and find a positive solution of pay hike of lower-level employees shortly.”

The sources added, “It’s not a big problem and it will be solved in 2 months after discussions with all stakeholders.”


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