7th Pay Commission: Government May Announce New Minimum Pay in 2018

New Delhi, Sept 13: The central government employees, who have been demanding a hike in minimum pay under the 7th Pay Commission or 7th CPC, may receive a big good news in January 2018. The government is reportedly considering to hike the minimum pay under the 7th Pay Commission after the Union Cabinet hiked the Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners, in accordance with the accepted formula based on the 7th Pay Commission recommendations.

According to a report of Sen Times, the government the government is likely to raise fitment factor 3.00 times from 2.57 times approved by the Cabinet based on the 7th Pay Commission recommendations. The new minimum pay may go into effect from January 2018, the report further said. The salary and pension of central government employees will go up if the government increases fitment factor 3.00 times from 2.57 times under the 7th Pay Commission.

There have been reports that the National Anomaly Committee may hike the minimum pay to Rs 21,000 from Rs 18,000. The committee, headed by Secretary, Department of Personnel and Training (DoPT), was formed in September 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations. However, the central government employees have been demanding to raise the minimum pay to Rs 26,000.

“The National Anomaly Committee is likely to give its nod to minimum pay Rs 21,000 with raising fitment factor 3.00 times from 2.57 times at the behest of the Finance Minister Arun Jaitley. An announcement on the higher minimum pay is expected soon from the government and it will be implemented from January 2018,” a Finance Ministry official was quoted as saying.

The 7th Pay Commission had raised the minimum pay from Rs 7,000 to Rs 18,000 per month while the maximum pay has been hiked from Rs 80,000 to Rs 2.25 lakh per month and Rs 2.5 lakh for the cabinet secretary—the senior-most civil servant. The Union Cabinet approved the recommendations of the 7th Pay Commission on pay hike and allowances on June 28 last year. The 7th Pay Commission had recommended a 14.27 per cent hike in basic pay — the lowest in 70 years.