New Delhi, Jan 12: Union Finance Minister Arun Jaitley will present the Union Budget 2018 on February 1. There could be some announcement related to a hike in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission. The government may constitute a high-level committee to fix new pay structure beyond the recommendation of the 7th Pay Commission
On June 30, 2016, a day after the Cabinet cleared the 7th Pay Commission recommendations, Arun Jaitley had promised to appoint a high-level committee to look into the issue of hike in minimum pay and fitment factor. However, the committee has not been formed yet. The government had constituted the National Anomaly Committee (NAC) in September 2016 to resolve all matters related to the implementation of the 7th Pay Commission‘s recommendations.
However, a letter from the Department of Personnel and Training (DoPT) to Secretary of Staff Side Shiv Gopal Mishra stated that the demand for an increase in minimum pay and fitment formula beyond the recommendation of the 7th Pay Commission does not appear to be treated as an anomaly, therefore, these do not come under the purview of the NAC. The fate of higher minimum pay now hangs in uncertainty and the central government employees are clueless in this regard.
If media reports are to be believed, the government is likely to form a high-level committee to fix new pay structure beyond the recommendation of the 7th Pay Commission. Cabinet Secretary Pradeep Kumar Sinha is likely to head the panel. The committee will submit its report on the salary hike in six months since its formation.
The government had approved recommendations of the 7th Pay Commission on a hike in salary of central government employees in June 2016. The 7th Pay Commission had raised minimum pay from Rs 7,000 to Rs 18,000 month. Since then, the central government employees have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times from 2.57 times