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7th Pay: Automatic pay revision mechanism when DA will rise above 50%

New Delhi: The government is considering automatic pay revision mechanism of its 4.8 million employees and 5.2 million pensioners when Dearness Allowance (DA) will rise above 50 percent, according to Finance Ministry officials involved with the process of pay commission recommendations implementation told The Sen Times on condition of anonymity.

Pay hike report when DA will rise above 50 percent, will be submitted to the FM Arun Jaitley.

They said “the government is likely to want to take decisions on raising central government employees’ salaries and allowances when DA will rise above 50 percent.” While they had earlier said that salaries and allowances would be increased every year.

They now added “the government’s objective is to keep central government employees salaries and allowances in balance with prices in the market, so pay and allowances will be hiked when DA will rise above 50 percent.”

“For this, in future, government won’t appoint pay commissions every ten year,” they confirmed.

From now on, department of expenditure will be responsible to regularly monitor salaries and allowances of central government employees and consider salary and allowance disparities in accordance with the inflation.

The officials said “the department of expenditure will submit a report in respect of pay hike when DA will rise above 50 percent to the Finance Minister Arun Jaitley.”

The salaries and allowance of the central government employees can be adjusted in time after reviewing the report from the department of expenditure.

“This is a significant change and therefore the government should hold detailed discussions on the issue with the respective stakeholders,” they also told us.

The government hiked the salaries for the central government employees from August 2016. The employees also got arrears from January 2016 on the recommendations of the 7th Pay Commission.

While the government increased allowances on June 28, 2017, which came into effect from July 1, 2017, its made resentment among the central government employees for arrears on allowances.

Now, The central government employees unions have been demanding 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 and the government is working currently to hike pay of the lower-level employees from pay matrix level 1 to 5, with fitment factor 3.00 times instead of 2.57 times of basic pay of 6th pay commission. Accordingly, minimum pay will be hiked up to Rs 21,000.

Earlier, Justice A K Mathur, who headed the 7th pay commission, had submitted its report to Finance Minister Arun Jaitley on November 19, 2015.

The 7th pay panel recommended hike of 14.27 percent in the basic pay, with a fitment factor of 2.57 times of basic pay of 6th pay commission uniformly for replacing the 6th pay commission pay scales of the central government employees.


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