New Delhi, Oct 11: However, the government had approved the recommendations of 7th Pay Commission or 7th CPC on pay hike and allowances last year, it is yet to resolve all matters related to the anomalies in the implementation. The central government employees, who had to wait for months to get revised allowances under the 7th Pay Commission, are now waiting for a hike in minimum pay and fitment factor, which will raise their salaries. They, however, may not receive arrears on higher minimum pay.

Minimum Pay and Firment Factor:

The government is considering a hike in minimum pay and fitment factor beyond the recommendation of the 7th Pay Commission. The government has reportedly given a green signal to the National Anomaly Committee (NAC) to make a report suggesting a hike in minimum pay. The NAC may suggest hiking minimum pay to Rs 21,000 from Rs 18,000 – recommended by the 7th Pay Commission and approved by the Cabinet. Fitment factor will be raised to 3.00 times from the existing 2.57 times. However, the central government employees have been demanding to raise minimum pay from Rs 18,000 to Rs 26,000 and fitment factor 3.68 times from 2.57 times.

If the government raises the minimum pay to Rs 21,000, the central government employees will receive an unprecedented 17 percent increase over Rs 18,000 they receive now. A Finance Ministry official, speaking to Sen Times, said the government plans to raise minimum pay to Rs 21,000 — an unprecedented 17 per cent increase over Rs 18,000 recommended by the 7th Pay Commission.

Arrears on Higher Minimum Pay:

The government is unlikely to give arrears on higher minimum pay. If media reports are to be believed, financial advisors to the government are of the view that arrears on higher minimum pay will bring an extra burden on the exchequer. The 7th Pay Commission, which was poised to have cost the Centre Rs 1.02 lakh crore, would cast a heavy toll on the exchequer. The release of arrears would further stress the exchequer, feels the government. The government is also worried about the decline in country’s GDP growth.

“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 bu the 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,” a Finance Ministry official was quoted as saying.

The 7th Pay Commission had recommended a 14.27 per cent hike in basic pay — the lowest in 70 years. The Union Cabinet approved the recommendations of the 7th Pay Commission on June 28 last year.