Government Increasing the Minimum Pay: As per the 7th Pay Commission

As per the 7th Pay Commission rule, the minimum pay of central government employees may be hiked Rs 21,000 from Rs 18,000 as suggested by the Finance Ministry. After the recommendations of the 7th Pay Commission, it is set to increase the minimum pay.

The government has made announcement that this would be action from January 1 2016. The decision will be taken to because the legislation would require an adjustment to the Consumer Price Index inflation measure.

The unions have been saying that this would help the economy. If spending increases, then it would benefit the economy, the union Government employees has been seeking a rise in the basic minimum pay, currently which is very low so the minimum pay must be hiked, so the government is now contemplating an increase in the basic minimum pay effective January 1 2016.

A top central government employees’ union leader said. “The government should treat its employees well tend to attract good employees and retain them longer, Raising the minimum pay could also encourage central government employees to work harder and stay on the job longer.”

The demand by the unions is to increase the basic minimum pay from Rs 18,000 to Rs 25,000. These are those employees who work well but are low paid as per their under consideration. There would be no harm in increase the basic minimum pay as per the government feels till now, if the lower paid employees work well. This would provide to solve employees’ like

  • Economic problems
  • Eliminating poverty
  • Stimulating the economy

Convenor of National Joint Council of Action (NJCA) Fitment formula Shivgopal Mishra says that they have fixed the minimum pay at a meagre Rs. 18,000 in the 7th Pay Commission. In the last Pay Commission, the basic pay was Rs. 7,000. They multiplied it by 2.57 (fitment formula) and came to Rs. 18,000. He also said that they are demanding 3.68 fitment formula.

On July 29 Government’s commitment on 7th Pay Commission, impacts around 48 lakh central government employees and 52 lakh pensioners. Finance Minister Arun Jaitley made a commitment to hike the minimum pay of central government employees beyond Rs 18,000.

The cabinet approved that there is some scope to change in minimum pay to Rs 21,000 from Rs 18,000, it is likely not to be considered by the National Anomaly Committee on behalf of the government but they may agree to recommend the minimum pay Rs 21,000 with raising fitment factor 3.00 times from 2.57 times at the behest of the Finance Minister Arun Jaitley.”

The senior-most civil servant and a fitment factor of 2.57 has been proposed to apply uniformly for all employees.The 7th Pay Commission had recommended the minimum from Rs 7,000 to Rs 18,000 per month while the maximum pay has been hiked from Rs 80,000 to Rs 2.25 lakh per month and Rs 2.5 lakh for the cabinet secretary.

The central government employees unions are demanding raising fitment factor 3.68 times from 2.57 times which is for hiking minimum pay Rs Rs 26,000 from Rs 18,000. The government had formed a 22-member National Anomaly Committee headed by Secretary, Department of Personnel and Training (DoPT) in September, 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

However, economists have produced countless studies either supporting or disputing the wisdom of raising the minimum pay. After due hearing and by majority vote of all its stakeholders, the National Anomaly Committee may recommend to hike minimum pay Rs 21,000 from Rs 18,000.

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