New Delhi, Oct 13: The government is likely to hike minimum pay beyond the recommendation of the 7th Pay Commission or 7th CPC for its employees next year. The government is considering to hike minimum pay to Rs 21,000 from Rs 18,000 – recommended by the 7th Pay Commission and approved by the Cabinet. The government may raise the fitment factor to 3.oo times from the existing 2.57 times under the 7th Pay Commission. The Cabinet is expected to take up the matter of hike in minimum pay in January 2018.
According to reports, the National Anomaly Committee (NAC), formed by Union Finance Minister Arun Jaitley to look into the anomalies in the 7th Pay Commission recommendations’ implementation, may recommend an unprecedented 17 percent increase over Rs 18,000 minimum pay approved under the 7th Pay Commission. The government has reportedly given green signal to the NAC for a hike in minimum pay with fitment factor 3.00 times.
If the 2.57 fitment formula, recommended by the 7th Pay Commission, is tinkered with, then salary and pension in general for all segments of employees will go up. However, the government is unlikely to pay arrears on higher minimum pay. The government doesn’t want to put an extra burden on exchequer with the release on arrears. The 7th Pay Commission was poised to have cost the Centre Rs 1.02 lakh crore.
Arun Jaitley reportedly promised representatives of the central government employees that minimum pay would be raised beyond the 7th Pay Commission. “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 was quoted as saying. The NAC will soon submit its report on minimum pay, which will be further examined by the Empowered Committee of Secretaries and the Department of Expenditure.
The government approved the 7th Pay Commission recommendations for its employees with higher minimum basic pay from Rs 7,000 to Rs 18,000 per month in June last year. The 7th Pay Commission had recommended a 14.27 percent hike in basic pay — the lowest in 70 years. 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.