7th Pay Commission: Hike in Minimum Pay And Fitment Factor Expected From Next Year

New Delhi, Oct 7: The new year 2018 is likely to bring good news for the government employees as the Union Cabinet may raise the minimum pay from January 2018 under the 7th Pay Commission or 7trh CPC. The government is also likely to raise the fitment factor three (3.00) times from the previous 2.57 times. The Union Cabinet had on June 28, 2017, approved recommendations of the 7th Pay Commission on pay hike and allowances, raising minimum pay from Rs 7,000 to Rs 18,000 per month. Since then, the government employees had been demanding a rise of Rs 8,000 in their minimum pay that is from Rs 18,000 to Rs 26,000. All eyes are now set on National Anomaly Committee (NAC) for a hike in minimum pay, fitment factor except for the 7th Pay Commission.

Apart from the recommendations of the 7th Pay Commission, if the fitment factor is increased from 2.57 to 3.00 times, the salary and pension of all the central government employees will go up. The current demand of the central government employees beyond the 7th Pay Commission is a minimum pay of Rs 21,000. They have argues that the current minimum pay of Rs 18,000 is not enough to live on. The maximum pay from Rs Rs 80,000 to Rs 2.25 lakh per month and Rs 2.5 lakh for the cabinet secretary with a fitment factor of 2.57 has been proposed to apply uniformly.

On June 30, 2016, Union Finance Minister Arun Jaitley held a meeting with the representatives of central government employees, assuring them that the demand for a minimum pay, apart from the recommendations of the 7th Pay Commission, would be considered. Jaitley then formed a high powered committee to look into the irregularities in the implementation of the 7th Pay Commission.

Demanding a raise of fitment factor 3.68 times from 2.57 times, the central government employees have now been asking for a minimum pay hike from Rs 18,000 to Rs 26,000 recommended by the 7th Pay Commission. The government had given a nod to NAC for a hike in minimum pay with fitment factor 3.00 times. The committee is expected to hold a meeting this month and send a report to the Empowered Committee of Secretaries and the Department of Expenditure.

“The meeting of NAC is likely to be held in this month for a hike in basic pay with fitment factor 3.00. Accordingly, minimum pay will be hiked Rs 21,000 from Rs 18,000,” a top official of Ministry of Personnel, Public Grievances and Pensions, was quoted as saying. Beyond the recommendation of the 7th Pay Commission, the Union Cabinet is also expected to take up the minimum pay issue.

“Since the Finance minister Arun Jaitley had promised to hike minimum pay after discussions with all stakeholders, efforts would be made to fulfill the same,” a finance ministry official was quoted as saying by the Sen Times.