7th Pay Commission: Govt near to announce pay hike despite Jaitley’s ailment

New Delhi: Pay hike of central government employees is close to announce despite Finance Minister Arun Jaitley’s ailment, who is under treatment for for a kidney ailment at the All India Institute of Medical Sciences (AIIMS) in New Delhi.

FM Arun Jaitley takes seriously his promise and wants to see the concrete result of his promise.

The Finance Ministry sources said, “There has been no proposal under discussion regarding withdrawal of pay hike beyond the 7th Pay Commission recommendations, which had been promised by FM Jaitley in Rajya Sabha on July 19, 2016. He takes seriously his promise and wants to see the concrete result of his promise.”

Sources also said the Finance Ministry is still working on the process of pay hike to keep Jaitley’s promise, and that pay hike could help central government employees, who get salaries from pay matrix level 1 to 5.

A senior source close to the Prime Minister’s Office (PMO) also said government was still likely to keep the pay hike process, which would be a boost to its lower level employees, whose efforts to help the government business. The source said, “Unless something drastic happens, Finance Minister Arun Jaitley will make pay hike announcement for central government employees after his recovery.”

However amid mounting fears of recent cash crunch, but government called the cash crunch as a ‘temporary shortage’ and assured that the situation will be tackled quickly. Accordingly, government should not fear to hike in minimum pay from Rs 18,000 to Rs 21,000 and fitment factor from 2.57 to 3, the Finance Ministry sources confirmed.

The 7th Pay Commission had recommended a hike of 14.27 percent in the basic pay, with a fitment factor of 2.57 times of basic pay of 6th pay commission for replacing the 6th pay commission pay scales, which was the lowest in the last 70 years and was got cabinet nod on June 29, 2016.

The basic pay and pension had been paid retroactive effect from January 1, 2016, but the allowances, which was paid from July 1, 2017 and no arrears for allowances was paid, as per usual practices prior to the 7th Pay Commission, the allowances are paid from the date of implementation of the pay commission.