7th Pay Commission Latest News: The Central Government employees are hopeful of a big hike in their minimum pay and fitment factor beyond 7th Pay Commission recommendations in the upcoming Union Budget.
The CG employees are not satisfied with the recommendations of the 7th Pay Commission recommendations regarding the minimum pay and have been demanding, for a long time, a hike of Rs 8000 and an increase in the fitment factor up to 3.68 times.
The CG employees have strong reasons to expect good news regarding their demand in the upcoming Union budget.
Last year, the distribution of salaries as per the 7th pay commission recommendations was considered as a factor that led to the recovery of the Indian economy.
The increment in the salary of employees in the organised sector after the implementation of 7th Pay Commission recommendations led to an increase in demand, which directly affected the economic growth.
The recent decision to cut the repo rate by 25 basis points was taken on June 6 after a 3-day meeting of the Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das.
All the six members of the MPC had voted in favour of a rate cut and also changed the stance of the policy from “neutral” to “accommodative”.
This changed stance indicates that the government is ready to infuse more money in the market to spike the demand.
If this stance could be any indication, the Central Government employees can expect a hike in their minimum pay in the upcoming budget.
The minimum pay of Central Government employees, currently, stands at Rs 18000 and they have asked for an increment of Rs 8000, after which it will rise to Rs 26000.
The first Budget of Modi 2.0 government is scheduled to be presented on July 5 by Nirmala Sitharaman on the backdrop of India’s economy hitting 5-year low growth of 6.8 per cent in 2018-19.
7th Pay Commission Recommendations and CG employees’ demands beyond that could be in the scheme of things since the Union Minister Nirmala Sitharaman has been continuously holding pre-budget consultations with economists, banks, financial institutions, and industry chambers to formulate a roadmap for reforms.
Government employees are also expecting an increase in their dearness allowances (DA) by four per cent in July 2019 to reach up to 16 per cent. If the allowance hike is implemented, it will be the biggest increase in the DA since the implementation of the 7th pay scale in 2016.