7th pay commission: As govt set for yearly salary review, here are the latest developments

The Prime Minister Narendra Modi government had been all set for the yearly salary review under the Seventh Pay Commission for around 50 lkah central government employees. 

However, confusion regarding the hike in minimum pay and fitment factor still lingers. 

Below we have listed the latest developments related to the seventh pay commission regarding pay hike and benefits to railways employees, here's a recap of what has happened. 

Salary hike happening or not?

Various conflicting reports have been surfaced in media claiming that despite of the fact that government had denied any pay hike, salary hike and increase in fitment factor for employees upto the pay matrix level 5 would happen. 

Quoting financial ministry sources, the report stated the government is ready to raise minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission for employees upto the pay matrix level 5. 

Earlier this month, the government disappointed around 50 lakh government employees when it denied reports of any pay hike beyond the recommendations of the seventh pay commission. 

"The minimum pay of Rs 18,000 [per month] and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration," said Minister of State Finance, P Radhakrishnan in a written reply.

What are employees demands? 
Employees are demanding the minimum pay hike of Rs 21,000 instead of Rs 18,000, what seventh pay commission has recommended. 

Currently, the Central government employees are getting basic pay according to the fitment formula of 2.57 of the basic pay and if this big step is taken, it will come as a massive news for the Central government employees. 

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.

After denial what employees are planning next? 
After Minister of State for Finance P. Radhakrishnan’s in Lok Sabha clarified that the PM Narendra Modi government is not considering any minimum pay hike beyond the recommendations of the seventh pay commission, the employees' associations reportedly are planning to go on a strike, Sen Times reported. 

The Sen Times reported that the National Joint Council of Action (NJCA) has threatened to go on strike. 

NJAC’s Shiv Gopal Mishra, who led the negotiation over 7th Pay Commission on behalf of central government employees, expressed dissatisfaction over the government’s decision and said the struggle for higher minimum pay will continue, the publication said. 

Some good news for Railways employees
After a long wait, a good news related to the Seventh Pay commission has finally came for the railway employees. 

The Ministry of Personnel, Public Grievances and Pensions Department of Personnel and Training (DoPT), citing Seventh Pay Commission recommendation, said that they could now avail Leave Travel Concession (LTC). 

However, it made clear that if a Railways employee has already availed of a Privilege Pass, then LTC would not be allowed in that year.