7th Pay Commission: Govt To Turn Pay Hike Dream Into Reality

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An official with the Ministry of Finance on condition of anonymity said the government promised to “pay an increase” for central government employees and is likely to change the lives of employees in better positions.

The official said that “the government is seeing a salary increase with an adjustment formula of 3.00 times the basic salary of the sixth payment commission”.

Central government employee unions, however, have been pushing for a “minimum wage” of 26,000 rupees per month with an adjustment formula of 3.68 times.

A union leader said he was skeptical that employees would see many benefits.

He cited the report of the 7th Payments Commission, which won the cabinet on June 29, 2016, increased the wage gap between employees with lower incomes and the most important bureaucrats from 1:12 in 2006 to 1:14.

He added that the wage gap should be made at least 1:12 for all employees.

He noted that Finance Minister Arun Jaitley’s announcement to raise the salaries of low-level employees beyond the recommendations of the 7th Payments Commission came only a few days after the cabinet made a proposal for a panel of payment. Jaitley also reiterated her commitment in Rajya Sabha on July 19, 2016.

The official said that the government raised the minimum wage of Rs 18,000 while the maximum payment of Rs 2.5 lakh per month with an adjustment factor of 2.57 times the basic salary of the sixth payment commission, which differ according to the Remuneration, according to the sixth salary panel, but the government is reflecting to compensate the salary difference between the lowest-paid employees and senior officials through the salary increase of employees, who are receiving salaries from the payment matrix from level 1 to 5.

The official added that the government is legally bound to comply with the implementation of FM Jaitley’s announcement in Parliament on July 19, 2016 for salary increases, so the salary increase beyond the recommendations of the 7th Payments Commission for Lower level employees will be implemented as of April.

He also confirmed that the Ministry of Finance is investigating the issue ignoring the DoPT letter on October 30 of last year and is likely to address the issue with the respective stakeholders.