7th Pay Commission: Government mulling over hike in pay without arrears

7th Pay Commission: Government mulling over hike in pay without arrears
Government is mulling an increase in the hike in pay to central government employees beyond 7th pay commission recommendations, a top Finance Ministry official, who did not wish to be named told The Sen Times here today.

Government will come out with a decision in this regard soon after consulting finance experts and weighing its pros and cons, he said.

Government is now considering to make only pay hike for its employees.

"The financial advisers of the government believe it could be tough to give arrears of the hike in pay as the government has been worried after the April-June GDP growth slipped to a three-year low of 5.7 percent but government believes it will bounce back in the second quarter. Among others, it observed that this year's fiscal math is already stressed as public spending was front-loaded to offset slower private sector participation and cushion the impact of GST roll-out", he revealed.

"All round development is possible only hike in basic pay with fitment factor 3.00 and minimum pay will be raised to Rs 21,000," he said.

The 7th Pay Commission, led by Justice A K Mathur, earlier proposed minimum basic pay from Rs 7,000 to Rs 18,000 per month while the maximum basic pay from Rs 80,000 to Rs 2.5 lakh, which have been paid with arrears, effective from January 1, 2016.

The central government employees unions had expressed their dissatisfaction over the inadequate hike in basic pay in accordance to the pay panel recommendations.

They are demanding for hiking minimum pay Rs 18,000 to Rs 26,000 and the and asked to raising fitment factor 3.68 times from 2.57 times.

Stating that National Anomaly Committee (NAC) headed by Secretary, Department of Personnel and Training (DoPT) has been formed under pressure in September, 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission's recommendations, the official said, "The NAC meeting is likely to be held in October to confirm to hike the basic pay with fitment factor 3.00."

Pointing out that the Finance Minister Arun Jaitley had promised to hike minimum pay after discussions with all stakeholders, he said, "government has made active efforts to fulfill the same".
The proposal of hike in pay is likely to be sent to the Finance Minister Arun Jaitley from NAC, after which it will be placed before the cabinet. Official believes it will come into effect within January' 2018.

TST