The Seventh Pay Commission had recommended that the minimum basic pay must be increased to Rs 18,000. The 7th pay commission’s observations were implemented and the a fitment factor of 2.57 times was implemented over salaries given according to the sixth pay commission. However, given the protest of government employees over raising the minimum basic pay, the government might make the minimum salary to be Rs 21,000 with fitment factor 3 times from April 1, when the new financial year starts. However, it will be interesting to see whether the government will be able to concentrate on the employees’ demands or other pressing issues faced by the economy.

7th pay commission’s recommendations had not gone down well with the employees. They were demanding that the minimum salary under 7th CPC must be spiked to Rs 26,000 with a fitment factor of 3.68 times. They had also gone on strike in 2016. Finance Minister Arun Jaitley had reportedly assured that their demands will be looked into.

Their were conflicting reports regarding the Seventh Pay Commission whether the government will or will it not approve the demands of employees. However, the most recent report has said that the government might only approve Rs 21000 as the minimum basic pay with fitment factor 3 times.

One of the biggest reasons for the government to not readily agree to their demand is the current situation of economy, which is facing a big challenge of bad loans. Massive bank scams have also come up. The government might also want to increase employment rather than salaries.