Published On: Wed, Sep 12th, 2018

7th Pay Commission: Modi govt to offer salary hike as elections approach

New Delhi: Modi government will raise central government employees’ pay starting in January, 2019, a move likely to pass as Prime Minister Narendra Modi tries to curb agony of his government employees before general elections expected next year.

PM Modi is under pressure to revive national economy.

Modi, facing second general elections vote set for May, his Finance Minister Arun Jaitley promised on June 30, 2016 to hike pay beyond the recommendations of 7th Commission for central government employees and he also reiterated his promise in Rajya Sabha on July 19, 2016.

The 68-year-old Modi is under pressure to revive national economy. The country suffers from a shortage of dollars that have curbed imports, a dilapidated infrastructure and unemployment rate has risen highly.

A top finance ministry official said on Wednesday the government is likely to offer to increase salaries for all its employees.

The offer followed National Anomaly Committee (NAC), which had agreed to address the pay anomaly like the difference of fitment factors.

The NAC was formed in September, 2016 to resolve pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations after Jaitley’s promise.

The employees’ unions had threatened to go to indefinite strike over pay hike on July 11, 2016 after cabinet approval of the 7th Pay Commission’s recommendations, but they had called off their indefinite strike after Jaitley’s promise.

The proposed increase is still far lower than employees’ demands – they wanted hike in pay with a fitment factor of 3.00 – but the government is considering hiking fitment factor 2.7 or 2.8.

“The government is likely to increase the fitment factor 2.7 or 2.8 for encouraging the lower level employees on the report of NAC,” the official said, adding that he hoped it would be announced before general elections.

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


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