7th Pay Commission

In what may come as a major setback for government employees, a finance ministry source has hinted that there is no scope for a change in minimum basic pay from Rs 18,000 to Rs 26,000. This source, while referring to a Department of Personnel Training letter that said that fitment factor and minimum pay didn’t come under the National Anomaly Committee, stated that there is no point in hoping that the minimum basic salary will be hiked in future. It was indicated that Finance Minister Arun Jaitley had promised hiking minimum pay through High-Level Committee, fearing protests, but now the government has decided to reject their demand.

“The demand of central government employees for hiking minimum pay now may not be considered by the NAC and the government now decided not to appoint High Level Committee to examine the 7th Pay Commission recommendations in respect of minimum pay,” this source was quoted as saying by Sen Times. Even though the seventh pay commission had recommended a minimum basic salary of Rs 18,000, the employees had demanded it be raised to Rs 26,000.

Finance Minister Arun Jaitley had promised that the government would consider the demands after having discussions with all stakeholders. However, as per the latest development, it looks like the Cabinet will not clear any new proposal as it had already cleared the 7th Pay Commission recommendations.

The seventh pay commission had decided to make the minimum salary to be Rs 18,000 with fitment factor 2.57 times. The employees are demanding minimum pay to be Rs 26,000 with fitment factor 3.68. It was reported earlier that the National Anomaly Committee might agree to make the minimum salary to be Rs 21,000 from Rs 18,000. The fitment factor was reported to be increased from 2.57 to 3 times.

Earlier this month, a report had suggested that the hike in minimum pay may come into effect from April 2018. It said that the National Anomaly Committee (NAC) would submit a report on pay hike by December 15 and then, it will be sent for Cabinet approval. Hence, minimum pay is likely to come into effect from April 2018.

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