7th Pay Commission Latest News: Union Minister Nirmala Sitharaman presented the full-fledged budget of 2019-2020, yesterday, but the central government employees were left disappointed after no announcement regarding their demands beyond the 7th Pay Commission recommendations was made.
The Central government employees have been waiting for their demands of increment in minimum pay and fitment factor beyond the 7th Pay Commission recommendations.
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 minimum pay of CG employees, currently, stands at Rs 18000 and they want an increment of Rs 8000, after which it will stand at Rs 26000.
Nirmala Sitharaman proposed the cabinet decision taken to incentivise National Pension System (NPS) while presenting the union budget. She proposed to increase the limit of exemption from the current 40% to 60% of payment on final withdrawal from NPS and to allow deduction under section 80C for the contribution made to Tier II NPS account by Central Government employees.
She also proposed to allow a deduction for the employer’s contribution up to 14% of salary from the current 10%, in the case of Central Government employee.
Though the Central government employees’ hopes, for a hike in minimum pay and fitment factor, were shattered, the CEO of the NITI Aayog Amitabh Kant, said, “The Union Budget is path-breaking. It’s a very comprehensive budget.”
“We’re particularly delighted as the Finance Minister has acknowledged the role of NITI Aayog. But more important is the road map that she has set for laying down a vision for $5 trillion economy,” he added.