7th Pay Commission: Even as around 50 lakh central government employees and an even larger number of retirees are waiting anxiously for their pay hike in April, the latest news suggests that their much awaited salary hike expectation might not go beyond the fitment factor recommendations of the seventh pay commission report. The reason cited is the higher-than-projected revenue deficit. The implementation of the 7th pay commission has reportedly impacted the government's budget negatively and with various state governments stating that their economies are bearing the brunt of it due to large payouts, the government might not be able to meet the demand of an increased minimum pay hike. The Central government employees are currently getting basic pay according to the fitment formula of 2.57 times and the good news they were expecting would bring it up to 3.00 times, if not 3.68 times. It may be noted that the fitment factor is a figure, used by 7th CPC with which the basic pay in 6th CPC regime, is multiplied to fix basic pay in revised pay structure as per the 7th pay commission recommendation report.
Putting forth the government view with regard to 7th Pay Commission report, the Minister of State for Finance P Radhakrishnan stated that the government was not considering a hike in minimum pay beyond the recommendations of the panel, a DNA India report stated. Replying to a question in the Upper House of Parliament, the Rajya Sabha, he said, "The minimum pay of Rs 18,000/- per month and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration."
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Minister Radhakrishnan was replying to a question by Samajwadi Party MP Neeraj Shekhar, who asked, "whether Government is actively contemplating to increase minimum pay from Rs 18,000/- to Rs 21,000/- and fitment factor from 2.57 to 3, in view of resentment among Central Government employees over historically lowest increase in pay by 7th Central Pay Commission." It may be noted that the Seventh Pay Commission had recommended Rs 18,000 as the basic salary, but the employees are demanding it to be fixed at Rs 26,000 based on fitment factor of 3.68 times.
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