New Delhi, February 26: Around 48 lakh government employees fall under the category of minimum wage and according to a report recently published by several media outlets the lower-level ones might get an increased pay under 7th Pay Commission from April. (Update: 7th Pay Commission: Government to Raise Minimum Pay to Rs 26,000 With Fitment Factor 3.68 Times?)
Earlier this month, there were several reports, Union Finance Minister Arun Jaitley had called to increase the minimum pay and fitment factor for them, which would be effective from April 1, 2018.
The Sen Times also reported that the government employees, who received salaries from pay matrix level 1 to 5, are expected to receive a hike in minimum pay scale to Rs 21,000 from Rs 18,000 from April 1, 2018.
Once the pay is increased, these employees will reportedly see an increase in their fitment factor from 2.57 times to 3.00 times of the basic pay pf 6CPC.
An official further told the newspaper that FM Jaitley will also prefer to pick and choose lower-level employees and pay hike accordingly rather than salary hike for middle-level employees.
The central government employees are getting basic pay according to the fitment formula of 2.57 of the basic pay and if this is a big step taken by the government, it will come as a massive news for the Central government employees.
Fitment factor is a figure used by 7th Pay Commission with which the basic pay in 6th Pay Commission regime is multiplied in order to fix the basic pay in revised pay structure. Fitment factor formulated by 7th Pay Commission is 2.57. Earlier it was expected that the proposal would be sent to the Cabinet at the start of next financial year.
The 7th Pay Commission led by Justice AK Mathur and committee had earlier recommended Rs 18,000 as the basic salary but the employees had started demanding it to raise further to Rs 26,000.
In 2016, FM Jaitley while addressing the lawmakers in Rajya Sabha had promised to hike pay of the central government employees beyond the suggestion of the 7th Pay Commission.