7th Pay Commission: Minimum Basic Pay may increase

7th Pay Commission has been making rounds this year. And now the National Anomaly Committee is scheduled to meet this month to discuss the hike in basic minimum pay. After the meeting, a report will be submitted to the Department of Expenditure, and once it gets approved, then the matter will be placed before the Union cabinet.

If sources were to be believed, then it is expected that the government is going to raise the fitment factor to three times. This means that the minimum basic pay of Central government employees will reach up to Rs 21,000 from the existing Rs 18,000. The hike may get implemented freshly from January 2018. The increment of the fitment factor will become three times as compared to the current 2.57 times.

Actually, there has been a long-standing demand to hike the basic pay as the existing pay is not sufficient enough to cope with the rising prices and ultimately ends up in making the situation more worse. Speculations over the committee’s decision suggested that this basic pay hike is applicable to both working employees as well as pensioners. Also, earlier reports claimed that there have been few changes in the pay matrix level of the 7th pay commission.

The Finance Ministry said that the current Pay Matrix which starts at Rs 1,18,500 at Cell one and ends at Rs 2,14,100 at Cell 21, has been modified. The report also said that this Index of Rationalisation has been applied by the Commission on the minimum entry pay which corresponds to the successive Grades Pay in the pre-Revised pay structure. Also, some reports claim that this basic pay hike will be variable in nature, which is good news.

The government had informed that the variable pay is something which constantly keeps in mind the fluctuating markets and inflation. Although the 7th Pay Commission has recommended a basic pay hike of Rs 18,000, still it’s not the ultimate decision. The government indicated that it would hike the minimum pay after meeting all the stakeholders.


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