The Union Cabinet approved the recommendations of the 7th Pay Commission or 7th CPC on pay hike and allowances on June 28 last year.
New Delhi, Oct 10: While the government raised ‘dress allowance’ for diplomats and Special Protection Group (SPG) officers, under the 7th Pay Commission or 7th CPC, it may not release arrears on higher minimum pay for central government employees. The government is considering to hike minimum pay beyond the recommendation of the 7th Pay Commission but doesn’t want to put an extra burden on exchequer by giving arrears of the increase. Implementation of revised pay scales recommended by the 7th Pay Commission is estimated to put an additional burden of Rs. 1.02 lakh crore on the exchequer.
According to reports, the National Anomaly Committee (NAC), formed to look into the anomalies in the 7th Pay Commission recommendations implementation, is likely to hold a key meeting in October and may recommend hiking minimum pay to Rs 21,000 with fitment factor to 3 times. However, the central government employees have been demanding to raise minimum pay from Rs 18,000, recommended by the 7th Pay Commission, to Rs 26,000 and fitment factor 3.68 times from 2.57 times.
The government has reportedly given green signal to the NAC for a hike in minimum pay with fitment factor 3.00 times. The NAC has resolved all issues related to minimum pay hike after consultations with all its stakeholders and will prepare its report soon. The report will be further examined by the Empowered Committee of Secretaries and the Department of Expenditure. The Union Cabinet is expected to take up the issue of raising minimum pay beyond the recommendation of the 7th Pay Commission by the end of January 2018.
Since the Finance minister Arun Jaitley had promised to hike minimum pay after discussions with all stakeholders, efforts would be made to fulfil the same, a Finance Ministry official told Sen Times. However, the government is unlikely to release arrears on the hike in minimum pay following a decline in GDP.
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 Union Cabinet approved the recommendations of the 7th Pay Commission or 7th CPC on pay hike and allowances on June 28 last year, raising the minimum pay from Rs 7,000 to Rs 18,000 per month and fitment factor to 2.57 times.