While the government is likely to revise the minimum pay of the 4.8 million Central government employees, news making rounds is the Narendra Modi-led BJP government will not grant arrears on the revised higher minimum pay.
The government is ready to hike the minimum pay under the 7th Pay Commission to Rs 21,000 from the present Rs 18,000 by raising the fitment factor 3 times from 2.57 times. If the new pay comes into effect, the employees will get the benefit from January next year, but… “without arrears on the hike”.
Finance Minister Arun Jaitley is likely to table the new pay before the Cabinet in January next year recommending Rs 3000 hike in the minimum pay as against the recommendations of the 7th Pay Commission.
The discussion on raising the minimum pay of the government employees came after continuous demands from the employees unions. Besides, the National Anomaly Committee (NAC) found that the minimum pay under the 7th CPC would not have any impact on the financial position and living standards of the employees.
It is worth mentioning that the pay gap ratio between the lower paid employees and top officers increased to 1:41 after the 7th CPC as against 1:12 after the 6th Pay Commission. This has led the Central government employees’ unions to demand hike in minimum pay from Rs 18,000 to Rs 26,000 raising the fitment factor 3.68 times from 2.57 times.
Taking cognizance of this pay gap, National Anomaly Committee (NAC) was formed in September 2016 by the government to look into the minimum pay issue taking into consideration the demands of the central government employees.
As per latest reports, the committee is presently looking into the pay anomalies arising out of the implementation of the 7th Pay Commission. Besides, it will meet soon and following a majority vote, the minimum pay of the employees would be hiked.
The impact of the 7th Pay Commission recommendations’ has been much lesser on our finances as against what we had got from the 6th Pay Commission. Even the mere Rs 3000 hike will not be able to help us. If the government increases the minimum pay to Rs 26,000, as demanded, many problems could be solved, said a central government employee.
“Hike in pay without arrears… Gosh, how could it help? The government must stop playing with our emotions,” said a disappointed Central Income Tax employee.