7th Pay Commission: Govt to raise pay, bigger than pay panel

New Delhi: Central government employees’ pay will rise with a fitment factor of 3.00 times of basic pay of 6th pay commission, the much bigger real-terms increase than the 7th pay panel recommendation, a senior Finance Ministry official said on Monday morning, presenting the rise as a measure of economic strength after PNB scam, which has been dubbed as the biggest bank fraud in India’s history.

FM Arun Jaitley promised in Rajya Sabha to hike pay of the employees beyond the suggestion of the 7th Pay Commission.

The change will take effect from the new financial year, which begins on April 1 and will come after a lapse of more than one and half year of the promise of Finance Minister Arun Jaitley in Rajya Sabha.

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

The 7th Pay Commission recommendations of minimum pay from Rs 7,000 to Rs 18,000 while the maximum pay from Rs 90,000 to Rs 2.5 lakh with a fitment factor of 2.57 times uniformly of basic pay of 6th pay commission, was given nod by the Cabinet on June 29, 2016.

The central government employees’ unions had demanded 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 suspended their indefinite strike on June 30, 2016 following the assurance from the Finance Minister Arun Jaitley to look into their “core demand of increasing Pay and fitment formula”, he reiterated the same in Rajya Sabha on July 19, 2016.

“The pay hike will mean more financial security for central government employees; and a better future for their families,” the official said.

“This is just one of the many ways in which the government want to create a fairer for lower-level employees and the government is mulling to increase the pay of employees, who get salaries from pay matrix level 1 to 5, ignoring the DoPT letter,” he added.

Unions wanted to raise the pay beyond the 7th pay panel recommendations, so the government formed National Anomaly Committee (NAC) in September, 2016 to look into various pay related anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

In October 2017, Department of Personnel and Training (DoPT), said in its letter that the decision for increasing the minimum pay and fitment formula as per the recommendation of the 7th pay commission does not come under the anomalies and therefore the issue is not a concern of the NAC.

The government increased the salaries for all central government employees at a 14.27 percent in the basic pay on the basis of the 7th pay panel recommendations from January, 2016. That has not fueled hopes for employees. While the 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.