7th Pay Commission: Centre agrees pay hike for its employees

New Delhi: A top official of the finance ministry today told The Sen Times on condition of anonymity that central government agreed for raising pay for its employees following the official side of the National Anomaly Committee (NAC) accepting to remove anomaly of pay matrix of the employees.

Pay hike is also being seen as an attempt to woo the central government employees before the crucial general elections.

The central government employees unions and the official side of NAC ended marathon pay anomaly talks on Tuesday with a phased agreement to boost the pay of more 10 million central government employees and pensioners by fitment factor over 2.57 times, which was recommend by the 7th Pay Commission.

In September, 2016, the government had formed a 22-member NAC which was headed by Secretary of Department of Personnel and Training (DoPT). The committee was formed to look into the concerns of central government employees related to the pay anomaly.

The central government wants to lift basic pay of its employees to fitment factor 3.00 times from 2.57 times to raise the minimum pay to Rs 21,000, the official said.

In June, 2016, when the Union Cabinet had approved the implementation of 7th Pay Commission, that time, the government had fixed minimum pay at Rs 18,000 considering the fitment factor at 2.57.

The fitment factor is a figure used by 7th Pay Commission with which the basic pay in 6th Pay Commission is multiplied at 2.57.

However, the central government employees unions were demanding the rise in minimum pay to Rs 26,000 and raising fitment factor to 3.68

“The centre will come out with a decision in this regard soon after consulting finance experts and weighing its pros and cons but ‘no arrears on higher pay will be paid to central government employees. The Finance Ministry is now considering to make only basic pay hike for the employees. Accordingly, the government will take step on the National Anomaly Committee’s agreement soon,” the official revealed.

“The government will announce pay hike ahead of the general election due by May 2019, hence the Official Side of the NAC accepted to address the anomaly of pay matrix,” he added.

The move is in response to two year-old demand for anomaly in pay hikes but it is likely to be addressed ahead of the Lok Sabha poll is also being seen as an attempt to woo the employees before the crucial general elections.