7th Pay Commission Latest News: The government has finally given Central government employees, who are waiting for a hike in minimum pay and fitment factor beyond 7th Pay Commission recommendation, a reason to smile. As reports suggest, the Centre has increased its contribution to the National Pension Scheme (NPS) from 10 per cent to 14 per cent. Also Read - 7th Pay Commission Latest News: Centre Issues Protection of Pay Order For Central Govt Employees
The government contribution has been hiked for those Central government employees who are covered under the NPS Tier-I. The move is likely to benefit 18 lakh CG employees. Also Read - 7th Pay Commission Latest News: No Deduction, Telangana Govt Employees to Get Full Salary For June
What is NPS? Also Read - 7th Pay Commission Latest News: Telangana Govt Promulgates Ordinance on Deferment of Salaries, Pensions
The National Pension Scheme (NPS) is a government sponsored scheme for government employees. It was launched in January 2004. However, in the year 2009, it was opened up to all sections. On the basis of 7th Pay Commission recommendation, a committee of secretaries was set up which submitted its report in 2018. The Union Cabinet approved the decision of hiking Centre’s contribution to NPS on the basis of the draft.
What’s more in store?
As the New Year is just around the corner, the Central government employees can expect a new method to decide on pay hikes and promotions. A decision on the same is likely in the initial months of 2019. Under the new method, based on the 7th Central Pay Commission or 7th CPC recommendation, the CG employees may get a salary hike on the basis of their performance. The promotion and pay hike would also depend on the online rating given to the employees by public.
What Are CG Employees Demanding?
Over 50 lakh Central Government employees and an equivalent number of retirees are demanding a hike of up to Rs 8,000 in minimum pay and 3.68 times increase in fitment factor beyond the recommendations of 7th Pay Commission. However, in March, Minister of Finance (MoS) P Radhakrishnan had made it clear that the Centre is not considering a raise the minimum pay and fitment factor of 50 lakh Central Government beyond 7th Pay Commission recommendations.