New Delhi, Oct 6: The Union Cabinet approved the recommendations of the 7th Pay Commission or 7th CPC on pay hike and allowances on June 28 last year, raising the minimum pay from Rs 7,000 to Rs 18,000 per month and fitment factor to 2.57 times. Since then, central government employees have been demanding to raise minimum pay from Rs 18,000 to Rs 26,000 and fitment factor 3.68 times from 2.57 times. All eyes are now on the National Anomaly Committee (NAC) for raising minimum pay and fitment factor beyond the recommendation of the 7th Pay Commission. (Update: Arrears Unlikely Post Hike in Minimum Pay, Fitment Factor)

Union Finance Minister Arun Jaitley, on June 30, 206, held a meeting with representatives of central government employees unions at the residence of Home Minister Rajnath Singh. At the meeting, Jaitley assured them that their demand of raising minimum pay beyond the recommendation of the 7th Pay Commission would be considered. As promised, Jaitley formed a high-powered committee as well to look into the anomalies in the 7th Pay Commission recommendations’ implementation.

According to reports, the government has now agreed on raising minimum pay and fitment factor beyond Rs 18,000, recommended by the 7th Pay Commission and approved by the Cabinet. The government has reportedly given green signal to the NAC for a hike in minimum pay with fitment factor 3.00 times. The NAC has resolved all issues related to minimum pay hike after consultations with all its stakeholders. The committee is likely to hold the final meeting in this month and send its report to the Empowered Committee of Secretaries and the Department of Expenditure for further examination.

“The meeting of NAC is likely to be held in this month for a hike in basic pay with fitment factor 3.00. Accordingly, minimum pay will be hiked Rs 21,000 from Rs 18,000,” a top official of Ministry of Personnel, Public Grievances and Pensions, was quoted as saying. The Union Cabinet is expected to take up the issue of raising minimum pay beyond the recommendation of the 7th Pay Commission by the end of January 2018. “Since the Finance minister Arun Jaitley had promised to hike minimum pay after discussions with all stakeholders, efforts would be made to fulfil the same,” a Finance Ministry official told Sen Times.

However, NJCA chief Shiv Gopal Mishra, who has been leading the negotiations related to 7th Pay Commissiondismissed reports of hike in minimum pay. The 7th Pay Commission had recommended a 14.27 per cent hike in basic pay — the lowest in 70 years.