7th Pay Commission: Hike in Minimum Pay, Fitment Factor to be Further Delayed; Here’s Why
New Delhi, Mar 6: There is no certainty on whether the government will announce a hike in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission or 7th CPC. The wait over a hike in minimum pay and fitment beyond the recommendations of the 7th Pay Commission is likely getting longer as there is no clarity on this from the government. A report by Sen Times suggested that revelation of several bank frauds in recent days was delaying the salary hike.
Union Finance Minister Arun Jaitley had promised to raise minimum pay from Rs 18,000, which was recommended by the 7th Pay Commission and approved by the Cabinet. Jaitley is facing a dilemma over fraud on public sector banks, Reserve Bank of India’s data from April 2013 to June 2016 shows that a total of Rs 2,450 crore was lost to 1,232 bank frauds of Rs 1 lakh and more where bank employees were involved, the report said.
The government had approved the recommendations of the 7th Pay Commission in June 2016 raising minimum pay from Rs 7,000 to Rs 18,000 month with fitment factor 2.57 times. Since then, the central government employees have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times. There had been reports that the government was planning to hike minimum pay to Rs 21,000 with fitment factor 3.00 times, beyond the recommendations of the 7th Pay Commission.
A report by Zee Business recently claimed that the government may accept the demand of central government employees, raising minimum pay to Rs 26,000 from Rs 18,000 and fitment factor to 3.78 times from 2.57 times that were recommended by the 7th Pay Commission and approved by the Cabinet. However, there is no official confirmation yet.
If media reports are to be believed, the pay hike will be put into the Gazette in next financial year and will be implemented from April 2018. Central government employees, who get salaries from pay matrix level 1 to 5 may get a salary increase. Middle-level and top-level employees will continue to get salaries as per the recommendations of the 7th Pay Commission.