Bad news for 50 lakh govt employees: Centre may not hike minimum pay beyond 7th pay commission recommendations

While around 50 lakh government employees are waiting for the good news regarding pay hike in April, the latest media reports suggest that they are in for a bigger disappointment. 

It has been reported that the much awaited salary hike in April might not go beyond the recommendations of the seventh pay commission, the reason being higher-than-projected revenue deficits.

Experts believe that implementing the seventh pay commission itself has impacted the government's budget negatively and with various states indicating that that their economies have been affected by the large payouts, it has been widely expected that the Narendra Modi government might not fulfil the demand of an increased minimum pay hike. 

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.

Minister of State for Finance P Radhakrishnan also said that the Modi government was not considering a hike in minimum pay beyond the recommendations of the 7th Pay Commission.

"The minimum pay of Rs 18,000/- per month and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration," said MoS for Finance P Radhakrishnan in his reply to the Upper House of Parliament.

He was replying to a question by Samajwadi Party lawmaker Neeraj Shekha​r in which he asked, "whether Government is actively contemplating to increase minimum pay from Rs 18,000/- to Rs 21,000/- and fitment factor from 2.57 to 3, in view of resentment among Central Government employees over historically lowest increase in pay by 7th Central Pay Commission."