The minimum salary for Central Government employees is currently Rs 18,000 per month, but government is likely to hike the pay-scale to Rs 21,000 which will benefit the employees financially, once implemented.

Across India, over 48 lakh people work under the Central Government, and the news of possibility of hike in salary will affect all these families and aid them in achieving a better financial state. The Government has not officially declared its intentions yet, but as per internal sources, Modi government is all set to boost the minimum pay for Central Government employees to Rs 21,000 from Rs 18,000, under Seventh Pay Commission. Recently, the Government had treated its employees with a bonanza of increased allowances which brought 34 modifications and was made effective from July 1, 2017; but soon the employees demanded for a rise in salaries and demanded Rs 25,000 minimum salary.

The government says that increment in minimum pay scales will help the low paid employees which will ultimately help in eliminating poverty and help in simulating economic balance across the nation. Earlier, as per last Pay Commission, basic pay is Rs 7000 but as per the recommendations of the Committee on Allowance, it is multiplied by 2.57 (fitment formula) and came to Rs. 18,000. Now the basic play is likely to be multiplied by 3.68 fitment formula which will make the amount Rs 21,000.

Implementation of reformed allowance in July had affected all 48 lakh employees and 52 lakh pensioners. The hike in basic pay will ultimately help in developing a better economy because if people are paid more, they will spend more and it is like a chain reaction which keeps getting better and continues for good.