New Delhi, February 14: After a long wait of 20 months, the Narendra Modi government is working on a strategy to turn pay hike dream of central government employees into reality to help lower-level employees of pay matrix level 1 to 5 under 7th Pay Commission. (7th Pay Commission: Hike in Minimum Pay, Fitment Factor From New Financial Year)
Earlier this week, a Finance Ministry official reportedly said that the government was committed to increase the minimum wage of central government employees and is likely to turn lives of 48 lakh government employees into better positions.
The official said, “government is looking to hike the minimum wage with fitment formula 3.00 times of basic pay of 6th pay commission.”
The central government employees unions have been pushing for ‘minimum pay’ of Rs 26,000 per month with a fitment formula of 3.68 times.
A union leader representing central government employees said he was sceptical that all employees would see much benefit.
The source further said that the 7th Pay Commission, which got cabinet nod on June 29, 2016, the increased pay gap between lowest-earning employees and top bureaucrats from 1:12 in 2006 to 1:14. He further added that the pay gap should be made at least 1:12 for all government employees.
The union leader noted that the announcement of Finance Minister Arun Jaitley for raising salaries of lower-level employees beyond the recommendation of 7th Pay Commission, came just a few days after the cabinet gave a nod of pay panel proposal.
FM Jaitley also reiterated his commitment in Rajya Sabha on July 19, 2016.
The official further said that the government raised the minimum pay from Rs 7,000 to Rs 18,000 while the maximum pay from Rs 2.5 lakh for a month with a fitment factor of 2.57 times of basic pay of 6th Pay Commission.
The official further added that the government is legally bound to comply with the implementation of FM Jaitley’s announcement in Parliament on July 19, 2016, for raising minimum pay, so the pay hike beyond the recommendations for lower level employees will be implemented from April.
He also confirmed that the FM is also looking into the issue ignoring the Department of Personnel Training letter on October 30, last year and is likely to take up the matter with the respective stakeholders.