Good news for the Central government employees as they are likely to get a further hike in the minimum basic pay under the 7th Pay Commission. According to media reports, the National Anomaly Committee (NAC) is likely to meet next month for reviewing the basic pay structure and may recommend a hike in the minimum basic pay from Rs 18,000 to Rs 21,000 as against the current demand of getting it increased to Rs 26,000. Along with this, the fitment factor for basic pay is also likely to be raised to 3 times from 2.57 times as recommended by the 7th Pay Commission.
It may be noted that the Union government had a few months back approved an increase in the minimum basic pay from Rs 7,000 to Rs 18,000 per month while the maximum basic pay was increased from Rs 80,000 to Rs 2.5 lakh. However, employees’ unions were not happy with the hike in the minimum basic pay and wanted it to be increased at least to Rs 26,000. Whatever be the case, Central government employees will benefit from this move even if the minimum basic pay is hiked to Rs 21,000.
Under the 7th CPC, the earlier system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix has been introduced. In this regard, separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The CPC has introduced index of rationalisation for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy. In this context, CPC has enhanced the minimum pay from Rs 7000 to 18000 per month and the starting salary of a newly recruited employee at lowest level is now Rs 18000 whereas for a newly recruited Class I officer, it is Rs 56100. Under 7th Central Pay Commission (CPC), in fact, the salaries of the employees are obtained by multiplying the existing basic pay by a factor of 2.57 and the figure so arrived is added to all the applicable allowances such as Transport Allowance (TA), House Rent Allowance (HRA), Medical Allowance, etc.