7th Pay Commission: PM Modi govt may give salary hike beyond recommendations

Prime Minister Narendra Modi led government may bring cheer to around 50 lakh government employees as it has been widely reported that the government might give a pay hike beyond the recoomendations of the Seventh Pay commission. 

It has been reported that the Centre is mulling increasing the salary of low-level officials, from matrix level 1 to 5 and go beyond the recommendations of the 7th Pay Commission.

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.

It is expected that the proposal would be sent to the Cabinet at the start of next financial year.

According to various media reports, the official nod regarding the hike can reportedly come around the month of April.

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.

But 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.