7th Pay Commission Latest News: The recent rate cut announced by the Reserve Bank of India (RBI) can be an indication for the Central Government employees who have been demanding a hike in minimum pay and fitment factor beyond 7th Pay Commission recommendations.
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 CG employees are not satisfied with the recommendations of the 7th Pay Commission 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 decision to cut the repo rate by 25 basis points was taken on Thursday after a 3-day meeting of the Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das.
“The MPC notes that growth impulses have weakened significantly and a sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern,” stated the resolution passed by MPC.
All the six members of the MPC 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 soon expect a hike in their minimum pay.
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.
Union Minister Nirmala Sitharaman was briefed about the 7th Pay Commission recommendations and the demands of the Central Government employees after she assumed the office of the Ministry of Finance, but no decision has been taken yet.
Meanwhile, the government has declared a five-fold increase in the incentives for CG employees who have got higher education degree during their service in any department.
- The CG employees who have a PhD degree or equivalent certificate will be given Rs 30,000 under the government’s 7th Pay Commission latest recommendations.
- Employees who have cleared the PG Degree or Diploma course of duration one year above or equivalent will get Rs 25,000.
- Those employees who pursued a PG Degree or Diploma of duration one year or less or equivalent will get Rs 20,000 as incentives.
- There are also incentives of Rs 15000 for employees who have a Degree or diploma of more than three years in any subject.
- For those who acquired a Degree or diploma of a duration of three years or less or equivalent will get an incentive of Rs 10000.
Just before the announcement of Lok Sabha polls, the Central Government had announced a 3 per cent hike in the Dearness Allowance (DA) and Dearness Relief (DR) for employees and pensioners. The move was followed by the governments in at least five states.
Uttar Pradesh is the latest state to join the list and the state government has ordered to pay the second instalment of DA to its employees by June 30.