Central government employees’ dream of 7th Pay Commission pay hike will soon become a reality as the Modi government has vowed to resolve all the payment, arrear, hiked allowances and fitment formula related issues arising out of the recommendation of the 7th Pay Commission.

After a long wait of 20 months, the government has started working on developing a strategy to accommodate the concerns of low-pay-scale central government employees with a pay matrix level 1 to 5. Earlier this week, the Finance Ministry officially reported that the government is committed to increase the minimum wage of central government employees which is likely to benefit 48 lakh people. The plan is to contemplate a hike in pay with fitment formula 3.00 times of basic pay of 6th pay commission as the official report said, “government is looking to hike the minimum wage with fitment formula 3.00 times of basic pay of 6th pay commission.”

Besides the fitment formula hike, official statement stated that the government raised the minimum pay from Rs 7,000 to Rs 18,000 while the maximum pay from Rs 2.5 lakh for a month with a fitment factor of 2.57 times of basic pay of 6th Pay Commission. The report further added that the 7th Pay Commission, which got cabinet nod on June 29, 2016, the increased pay gap between lowest-earning employees and top bureaucrats from 1:12 in 2006 to 1:14. So the pay gap might be made at least 1:12 for all government employees.

A government spokesperson said that the government is legally bound to comply with the implementation of Finance Minister Arun Jaitley’s announcement in the Parliament in 2016, for raising the minimum pay. So the pay hike beyond the recommendations will be implemented possibly by April this year. The spokesperson also confirmed that the FM is also looking into the issue ignoring the Department of Personnel Training letter on October 30, 2017 and will take up actions as needed.

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