7th pay commission: RBI says revised HRA may impact inflation, here’s what it means for pay hike hopes
Pay hike hopes of around 50 lakh central government employees might get shattered in wake of the latest Reserve Bank of India (RBI)’s report. Various media reports are already doing the round that the Prime Minister in his August 15 speech might announce the hike in salaries beyond recommendations of the seventh pay commission. However, it should be noted that the government in the past had denied any such move.
Earlier, the Minister of State for Finance P. Radhakrishnan in Lok Sabha had said that the Narendra Modi’s government is not planning to give any hike in minimum basic salary beyond the recommendations of the seventh 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.