7th Pay commission: Latest update you need to know about retirement age, salary hike


Despite the government’s denial, around 50 lakh central government employees are still waiting for the pay hike beyond the recommendations of the seventh pay commission. While, there are many reports floating around arguing that why the Centre might give a pay hike just before the general elections of 2019,  employees hopes are still alive after the government increased MSP.

The employees are once again hopeful as this is an indicator that the government has the money and the economy is looking good. Many feel that the MSP is just the beginning of a slew of measures that the government would be introducing. The government has increased the minimum support price (MSP) of Kharif crops to 1.5 times the cost of production.

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Earlier, the Minister of State for Finance P. Radhakrishnan in Lok Sabha had said that the Prime Minister’s Narendra Modi 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.

But a report in the Sen Times claimed that the Modi government in the wake of 2019 elections would announce a salary hike. The report claimed that Prime Minister Narendra Modi in his August 15 speech from the Red fort would make the announcement. The report said that he would announce a hike in minimum pay and fitment factor and raise in retirement age.

The employees were demanding to raise the minimum basic pay to Rs 26,000 instead of Rs 18,000, the amount seventh pay commission recommended.

The report added that following the footsteps of the Madhya Pradesh government, the Centre is also likely to increase the retirement age of the central government employees from 60 to 62 years.

“Taking a leaf from Chouhan ahead of general elections next year, The BJP-led central government is mulling to implement the pay hike for central government employees,” a senior government official told the Sen Times.