Published On: Wed, Feb 28th, 2018

7th Pay Commission: Pay hike to go into effect in April

New Delhi: central government employees will see a slight pay bump in their pay to start off April.

The government is now working to transform pay hike into a reality of the lower-level employees, following the promise of the FM Arun Jaitley in the Parliament.

Finance Minister Arun Jaitley’s promised for hiking salaries of lower-level employees beyond the 7th Pay Commission recommendations in Rajya Sabha on July 19, 2016. From April, the nation-wide increase is likely go into effect, giving employees, who get salaries from pay matrix level 1 to 5, a pay bump with fitment factor 3.00 times instead of current 2.57 times of basic pay of 6th pay commission, a senior government official said on condition of anonymity.

The government plans to give minimum pay Rs 21,000 instead of current Rs 18,000 but the increase will differ based on pay matrix level, the official added.

The 7th pay commission recommendations were approved by the Union Cabinet in June 2016. The pay commission had recommended the minimum pay Rs 18,000 but the central government employees unions have been demanding a further raise to Rs 26,000 with a fitment formula of 3.68 times.

The government is now working to transform pay hike into a reality of the lower-level employees from April, following the promise of the Finance Minister in the Parliament and the demands of the unions despite the DoPT letter on October 30, last year, the official confirmed.

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

The pay panel recommendations benefited more than 1 crore central government employees and pensioners but it is the lowest in 70 years. So unions’ leaders earlier said the 7th pay commission hike was lowest in many decades and were not in sync with inflation. They had also said it was “totally disappointing and beats logic”.


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