7th Pay Commission Update – Minimum Pay Hike From January 2018 Likely

7th Pay Commission Update – Minimum Pay Hike From January 2018 Likely

The minimum pay hike for Central Government employees following the recommendations of the 7th Pay Commission had become a major issue. The government has been looking into the matter and has assured that the basic minimum pay would be hiked.

Finance Minister Arun Jaitley had promised to look into the issue. Sources say that the pay hike is round the corner and Central Government employees waiting for good news on pay hike will not have to wait long.

Minimum Pay hike coming in January

As per the ongoing process, sources say that the minimum pay hike will be effective from January 2018. There are still some processes remaining to be completed. This would take at least another two to three months, officials also said. Currently there is work on increasing the fitment factor. The fitment will have to be raised from 2.57 to 3 times.

What process remains

To look into these issues the National Anomaly Committee had been formed. The committee has been in touch with officials and is studying the issue from all angles. For the minimum pay hike to be raised, the NAC would have to approve the same. The NAC would have to vote in majority and sources say that this will surely take place. The NAC is likely to meet in October.

What will minimum pay hike be

Government officials say that the final minimum pay hike is set to be at Rs 21,000 and the NAC too is of a similar view. The government is planning on raising the fitment factor 3 times from 2.57 as a result of which the basic minimum pay would go up from 2.57 times to 3.

The Finance Ministry officials involved with the process of higher minimum pay has hinted on condition of anonymity that the government has decided that ‘no arrears on higher minimum pay Rs 21,000 from Rs 18,000 will be paid to central government employees.

“It’s an important payment for the financial impact to central government employees but no arrears on higher minimum pay will be given to employees and the Finance Minister Arun Jaitley will place it before the Cabinet in the month of January next year.”