New Delhi, Oct 12: The government on Wednesday extended the benefits of the 7th Pay Commission or 7th CPC for the teaching faculty of central and state universities and aided colleges. The government is also considering to hike minimum pay for its employees beyond the recommendation of the 7th Pay Commission. However, it may not release arrears on higher minimum pay. The Cabinet is likely to take up the matter of hike in minimum pay beyond the recommendation of the 7th Pay Commission in January next year. (ALSO READ: 20 Per Cent Salary Hike For Tamil Nadu Government Employees)

Human Resource and Development (HRD) Minister Prakash Javedkar, after a Cabinet meeting, announced that over 7,58,000 teachers in central, and state universities and government-aided colleges will receive the benefits of the 7th Pay Commission ahead of Diwali festival. The government has decided to give a hike between 22 per cent to 28 per cent, which means teachers in these institutions will get the increase between Rs 10,000 to Rs 50,000 at different levels. The hike will be retrospective, effective from January 1, 2016.

When it comes to the hike in minimum pay for the central government employees, the matter is pending before the National Anomaly Committee (NAC), which was formed by Union Finance Minister Arun Jaitley to look into the anomalies in the 7th Pay Commission recommendations’ implementation. If media reports are to be believed, the NAC may suggest hiking minimum pay to Rs 21,000 from Rs 18,000 – recommended by the 7th Pay Commission and approved by the Cabinet.

Fitment factor will be raised to 3.00 times from the existing 2.57 times. However, the 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 under the 7th Pay Commission. The NAC is expected to hold a key meeting in this month to finalise its report. The report will be further examined by the Empowered Committee of Secretaries and the Department of Expenditure before being placed before the Cabinet.

The government is unlikely to give arrears on higher minimum pay. The financial advisors to the government are of the view that arrears on higher minimum pay will bring an extra burden on the exchequer. The 7th Pay Commission was poised to have cost the Centre Rs 1.02 lakh crore. The release of arrears would further stress the exchequer, feels the government. A decline in country’s GDP growth and the impact of Goods and Services Tax (GST) roll-out on the economy have forced the government to refrain from releasing arrears on higher minimum pay, reported the Sen Times.

The 7th Pay Commission had recommended a 14.27 per cent hike in basic pay — the lowest in 70 years. The Union Cabinet approved the recommendations of the 7th Pay Commission on June 28 last year.