7th pay commission: The wait for minimum wage hike has turned out to be a long one for about 50 lakh government employees. It has been 17 months since the 7th Pay Commission recommendations were announced by Finance Minister Arun Jaitley in Parliament on July 19, 2016. Now, in what has come as a massive news for the employees, the Narendra Modi government is working on a strategy to turn this dream into reality. The government is reportedly set to help lower-level employees of pay matrix level 1 to 5 under the 7th Pay Commission.
The news was confirmed by a Finance Minister official who was reportedly quoted saying that the government was committed to increasing the minimum wage of central government employees and is likely to turn lives of 48 lakh government employees into better positions. The official said, “government is looking to hike the minimum wage with fitment formula 3.00 times of basic pay of 6th pay commission,” according to a report by Zee News.
This will be a major development in the matter as the government employees have been pushing for ‘minimum pay’ of Rs 26,000 per month with a fitment formula of 3.68 times. The official further said that the announcement of raising salaries of lower-level employees beyond the recommendation of 7th Pay Commission, came just a few days after the cabinet gave a nod of pay panel proposal.
The Union Cabinet had approved 34 modifications by the 7th Pay Commission which means an additional annual burden of Rs 30,748 crore on the exchequer. All allowances are given effect from July 1, 2017.
The 7th Pay Commission recommendations are set to benefit over 1 crore employees. This includes a total of 48 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.
In 2016, days after the 7th Pay Commission recommendations were cleared by the Cabinet, Finance Minister Arun Jaitley, in a meeting with central government employees, had promised to appoint a high-level committee to look into the issue of hike in minimum pay and fitment factor.
However, the government had constituted the National Anomaly Committee (NAC) in September 2016 to resolve all matters related to the implementation of the 7th Pay Commission‘s recommendations.