As the government is keeping its mouth shut about the pay hike, a media report suggested that the much-awaited salary hike suggested by 7th pay commission may take place after the assembly elections declared by the Election Commission recently. According to the report, the government will execute the pay hike under 7th Pay Commission following the elections concludes in Himachal Pradesh and Gujarat in December. The government is planning to give salary hike to employees in January as the counting of both the polls will be held on December 18.
As per the report, the government will evaluate the economic slowdown due to GST and demonetization into attention before implementing the increase. It is still not clear that how much the government will hike as of now. The government wants to increase the minimum basic salary to Rs 18,000, whereas the government employees wanted minimum basic salary to be Rs 26,000. The government, on the other hand, offered a Fitment factor 2.57 times, but the employees demanded a Fitment factor 3.68 times. The government is expected to find a middle way – it could make the Fitment factor 3 times and the minimum basic salary Rs 21,000, as per the reports.
On the other hand, the government is going through a tough time because of economic slowdown (GST and demonetization) and fulfilling the demand of employees may add extra pressure on the exchequer. At the same time, a report further added that the government may not pay the arrears and just hike the employees’ salary. A source told The Sen Times, “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 but 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.”