7th Pay Commission: GDP growth, inflation to restrict new hike to 17%

The National Anomaly Committee (NAC) is likely to meet later this month to take a final call on further raising the minimum pay as recommended by the 7th Pay Commission. However, the hike is likely to be restricted to around 17% of the Central government employees’ present salary.

The reason behind the expected slash of around 28% hike in minimum pay as against the demanded 45% hike by the Central government employees is likely due to the recent decline in the country’s GDP growth estimation.

Besides the plunge in the growth projection of the International Monetary Fund (IMF), the government is believed to be worried about a possible rise in inflation if it will increase the minimum pay by 45% and give arrears on the hiked pay too.

“The IMF has indeed lowered India’s growth projection to 6.7% this year which is 0.5 percentage points less than its previous two forecasts. But the burden should not be put on the employees neither should  they be blamed for it. In every 10 years, pay commission happens and the concerned government has to make systematic planning. Central government employees are not responsible for the incompetency of a government in handling the financial situation of the country,” said a retired Indian Railways employee.


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“Demand was 45% hike and if we get only a 17% hike, will it serve the purpose? The financial system of the country is presently going through its worst phase. Along with us, people of the country supported the government in its demonitisation call and also the present GST implementation. But in return, we have got no benefit. Disappointing people with your every move is like forcing the other one to go against you and the present government at the Centre is doing the same. I doubt the future of the country,” said a Central Income Tax employee.

This year’s fiscal math is already stressed, public spending has been reduced, government employees are upset, feeling deceived; people are ambiguous and worried about the government’s policies and its ramifications. “Gosh… What more can we tolerate! All expectations simply got ruined,” he added.

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“To be candid, I have personally stopped brooding upon the pay and all these news and rumors related to it. We have got what the government felt enough, it’s different that we hadn’t expected it to dip so low. But now, the news of further hike in the pay is just an eyewash just like increasing petrol, diesel prices by Rs 5 and the very next day decreasing the rates by Rs 2. I don’t have any expectations from this government as, I think, it feels that the middle-class is strong with extraordinary patience  and will tolerate everything silently,” said an Indian Navy employee.

Some, however,  believe that pay commission recommendations always lead to financial instability, especially in the form of inflation and government must be given time to get rid of it.

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