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New Delhi, Oct 9: The government is considering a hike in minimum pay beyond the recommendation of the 7th Pay Commission of 7th CPC for the central government employees. Though the government may raise minimum pay from Rs 7,000 to Rs 18,000 per month and fitment factor to 3 times, it would not give arrears on revised minimum pay under the 7th Pay Commission. According to reports, financial advisors to the government are of the view that arrears on higher minimum pay will bring an extra burden on the exchequer. (ALSO READ: Updates on Minimum Pay, Arrears & Hike in Allowance)
The government is worried after a decline in country’s GDP growth and doesn’t want to further stress the exchequer by giving arrears on minimum pay under the 7th Pay Commission, reported the Sen Times. The National Anomaly Committee (NAC), formed to look into the anomalies in the 7th Pay Commission recommendations’ implementation, is likely to recommend hiking minimum pay to Rs 21,000 with fitment factor to 3 times.
“The financial advisers of the government believe it could be tough to give arrears of the hike in pay as the government has been worried after the April-June GDP growth slipped to a three-year low of 5.7 percent bu the government believes it will bounce back in the second quarter. Among others, it observed that this year’s fiscal math is already stressed as public spending was front-loaded to offset slower private sector participation and cushion the impact of GST roll-out,” a Finance Ministry official was quoted as saying.
The Union Cabinet approved the recommendations of the 7th Pay Commission or 7th CPC on pay hike and allowances on June 28 last year, raising the minimum pay from Rs 7,000 to Rs 18,000 per month and fitment factor to 2.57 times. The 7th Pay Commission, which was poised to have cost the Centre Rs 1.02 lakh crore, would cast a heavy toll on the exchequer, claim critics. The release of arrears would further stress the exchequer.
Meanwhile, the government has asked the NAC to go ahead for a hike in basic pay with fitment factor 3.00, a top official of Ministry of Personnel, Public Grievances and Pensions, said quoting Finance Ministry sources. The Union Cabinet is expected to take up the issue of raising minimum pay beyond the recommendation of the 7th Pay Commission by the end of January 2018. Central government employees have been demanding to raise minimum pay from Rs 18,000 to Rs 26,000 under the 7th Pay Commission.
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