7th Pay Commission Could be Last CPC, Government Mulling Pay Hike When DA Crosses 50 Per Cent
New Delhi, Nov 17: The National Anomaly Committee (NAC) is likely to meet Union Finance Minister Arun Jaitley in December to discuss a hike in minimum pay beyond the recommendation of the 7th Pay Commission or 7th CPC. The NAC, which was formed to resolve all matters related to the implementation of the 7th Pay Commission‘s recommendations, may submit its report on minimum pay hike by December 15. However, the central government employees would receive higher minimum pay from April 2018.
Following the announcement of Assembly polls in Gujarat and Himachal Pradesh, the NAC meeting, scheduled to discuss raising minimum pay beyond the recommendation of the 7th Pay Commission in October, got postponed. Though no official date has not been announced, a Sen Times report said the NAC will submit its recommendations to FM Arun Jaitley by December 15. The report will be further examined by the Empowered Committee of Secretaries headed by Cabinet Secretary P K Sinha and the Department of Expenditure before being placed before the Cabinet.
The government has reportedly given a green signal to the NAC for a hike in basic pay beyond the recommendation of the 7th Pay Commission with fitment factor 3.00 times. The NAC may suggest hiking minimum pay to Rs 21,000 from Rs 18,000, which was recommended by the 7th Pay Commission and approved by the Cabinet. The central government employees, however, have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times from 2.57 times. Meanwhile, a central government employees’ union leader threatened for an indefinite strike if minimum pay and fitment factor are not increased as per their demands.
According to Finance Ministry sources, the higher minimum pay would be released from April 2018. Several reports earlier suggested that the government would raise minimum pay beyond the recommendation of the 7th Pay Commission from January. However, the sources denied these reports and said the higher minimum pay will come into effect by April next year at the latest.
The government had approved a hike in salary and allowances as per the recommendations of the 7th Pay Commission in June 2016 and July 2017 respectively. The 7th Pay Commission had recommended a 14.27 percent hike in basic pay — the lowest in 70 years and raised minimum pay from Rs 7,000 to Rs 18,000 month.