Published On: Mon, Mar 26th, 2018

7th Pay Commission: Govt ready to implement pay hike

New Delhi: Giving the hint that government is all set to implement pay hike beyond the recommendations of the 7th Pay Commission, Finance Ministry sources said that hike will have no impact on inflation.

FM Arun Jaitley assured to fulfill the demand of pay hike.

Finance Ministry sources today said the government is ready to implement the pay hike from April after reporting from stakeholders –including employees’ unions leaders and government representatives — to identify employees needs and priorities for hike in pay.

“Lower-level employees will benefit by pay hike,” the sources added.

However Minister of State for Finance Pon Radhakrishnan said recently in the Rajya Sabha that government was not now considering hike in pay and fitment factor.

The employees unions expressed dissatisfaction with minister’s response on pay hike and said they have not abandoned the demand to hike in pay.

They also told us that central government employees’ unions could possibly go on strike if negotiations with the government fail to result in pay hike.

A new problem has emerged from Radhakrishnan’s statement in Rajya Sabha about pay hike.

The unions leaders now put pressure on the government for higher pay and the government is also being pressured by the opposition parties to bargain for pay increases, the sources confirmed.

So, the Finance Ministry Arun Jaitley, who had made promise in July, 2016 in Rajya Sabha for pay hike beyond the suggestion of the 7th Pay Commission, he now decided to implement pay hike, the sources said.

After the government gave nod the recommendation of the 7th Pay Commission on June 29, 2016, the employees’ unions had threatened to go on an indefinite strike over pay hike on July 11, 2016.

They had demanded minimum pay Rs. 26,000 with 3.68 fitment factor for all employees, while the 7th Pay Commission recommended minimum pay Rs 18,000 with a fitment factor of 2.57 times uniformly of basic pay of 6th pay commission for lower and middle level employees.

The unions had called off their indefinite strike on June 30, 2016 following the assurance from the Finance Minister Arun Jaitley to fulfill their demand of pay hike, he reiterated the same in Rajya Sabha also.


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