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7th Pay Commission: Govt cancels pay raises for central employees

New Delhi: The Finance Ministry officials told  The Sen Times the government doesn’t want to scrap a pay raise for central government employees, saying the the Reserve Bank of India (RBI) couldn’t support it.

The government now declined FM Arun Jaitley’s pay hike offer on the pretext of the 2019 general election.

They described the pay increase as “inappropriate” because it would not give BJP a major boost ahead of the 2019 general election as pay raise will spark fears in the BJP that the opposition parties might be trying to get votes of common people from the saffron party on this issue.

“The government must maintain efforts to get votes of the common people on a fiscally sustainable issue, and goods and services tax (GST) and demonetisation were also impacted government finances,” they said.

Five assembly elections, particularly of the Hindi-speaking States of Chhattisgarh, Madhya Pradesh and Rajasthan, are very crucial for the ruling BJP ahead of the 2019 general election because it would determine the course of central government announces for the times to come and the fate of common people.

The nation suffers from a shortage of dollars which have curbed imports, a dilapidated infrastructure, growing unemployment have turned the youth against the government and government also facing protests over price rise.

“The government determines that for the 2019 general election, so it would not do anything to harm its winning general election and pay increase will be set to lose voting percentage,” they added.

They revealed pay increase beyond the 7th Pay Commission’s recommendations, should no longer happen.

However, the central government employees unions have been demanding minimum pay Rs 26,000 instead of Rs 18,000 and asked to raising fitment factor 3.68 times from current 2.57 times after implementation of the 7th Pay Commission’s recommendations

BJP led Narendra Modi government, who facing second general elections set for May, its Finance Minister Arun Jaitley assured the unions on June 30, 2016 to hike pay beyond the recommendations of 7th Commission for central government employees and he also reiterated his assurance in Rajya Sabha on July 19, 2016 but the government now declined Jaitley’s offer on the pretext of the 2019 general election.

The financial experts in the government say central government employees are paid higher salaries to compensate for the higher cost of living.

Hence, they stresses a pay freeze would not affect the central government’s ability to attract qualified persons, and they also say the government would focus on recruiting, retaining and rewarding high-performing central government employees and those with critical skill sets.


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