It is expected that the proposal would be sent to the Cabinet at the start of next financial year.
The start of next financial year in April may bring cheer for around 50 lakh central government employees, as various media reports suggest that the Narendra Modi government i slikely to raise the minimum pay and the fitment factor.
The government is likely to raise fitment factor of lower-level central government employees, beyond the recommendations of 7th Pay Commission, up to the pay matrix level 5 from April 1, 2018, according to a report published in india.com.
The Centre has been mulling changes to the recommendations of the 7th Pay Commission or 7th CPC with fitment factor to 3 times from 2.57 times, which was recommended in the 7th Pay Commission, from April 2018, according to the latest reports.
Fitment factor is a figure used by 7th CPC with which the basic pay in 6th CPC regime (i.e Pay in Pay band + Grade pay) is multiplied in order to fix basic pay in revised pay structure (i.e 7th CPC). Fitment factor formulated by 7th CPC is 2.57.
It is expected that the proposal would be sent to the Cabinet at the start of next financial year.
However, before raising the minimum pay and fitment factor beyond what was recommended in the 7th Pay Commission, the government will consider the state of the economy.
“Government is on the path of effecting minor changes in the pay matrix up to level 5 such as the Finance Minister Arun Jaitley’s commitment to the central government employees unions’ leaders should be honoured,” the Sen Times quoted the Finance Ministry official as saying.
However, analysts deny the scope for a change in minimum basic pay from Rs 18,000 to Rs 26,000.
The Seventh Pay Commission had earlier recommended Rs 18,000 as the basic salary but the employees are demanding it to raise further to Rs 26,000.
Arun Jaitley in 2016 in Rajya Sabha promised to hike pay of the central government employees beyond the suggestion of the 7th Pay Commission.
Meanwhile, there is also a buzz that the government would not pay arrears on pay to the central government employees.
Finance Minister Arun Jaitley reportedly would place it before the Cabinet in the month of April.
To recall, the resolution conveying the central government’s decision on recommendations of the 7th Central Pay Commission (CPC) on allowances published in Gazette of India on 6th July, 2017.
Based on the report of Committee on Allowances (CoA) and the recommendation of E-CoS, the Cabinet had earlier approved the modifications in 34 allowances in its meeting held on 28th June 2017. All allowances are given effect from 1st July 2017. It will benefit 34 lakh civilian employees and 14 lakh defence personnel.
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