The start of next financial year in April may bring cheer for around 50 lakh central government employees, as various media reports suggest that the Narendra Modi government i slikely to raise the minimum pay and the fitment factor.
The government is likely to raise fitment factor of lower-level central government employees, beyond the recommendations of 7th Pay Commission, up to the pay matrix level 5 from April 1, 2018, according to a report published in india.com.
The Centre has been mulling changes to the recommendations of the 7th Pay Commission or 7th CPC with fitment factor to 3 times from 2.57 times, which was recommended in the 7th Pay Commission, from April 2018, according to the latest reports.
The official said the Finance Ministry made some inputs, including fitment formula and which employees to be covered under new pay hike for rising salaries beyond the recommendations of the 7th Pay Commission. The official also said the government is committed to implementing salary hike beyond the recommendations of the 7th Pay Commission to fulfil Union Finance Minister Arun Jaitley’s promise.
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.
However, 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.