7th Pay Commission Latest News Today: Will Minimum Pay Hike Reduce Poverty?

India.com News Desk
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7th Pay Commission Latest News Today: Will Minimum Pay Hike Reduce Poverty?

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.

New Delhi, Nov 13: While the government is taking all precautions before raising minimum pay beyond the recommendation of the 7th Pay Commission or 7th CPC, central government employees believes the hike will bring out them from the depth of poverty. They say the existing minimum pay Rs 18,000, under the 7th Pay Commission, isn’t enough for low-paid workers to fulfil their families’ daily needs. However, the government is worried that raising minimum pay beyond the 7th Pay Commission‘s recommendations could negatively impact on the exchequer.

Raising minimum pay to Rs 21,000 against the Rs 18,000, which was recommended by the 7th Pay Commission and approved by the Cabinet, would help an average family of four members to pay their bills and get daily supplies, said a Sen Times report. “The salary increase would be a big step towards moving a large number of central government employees out of the depth of poverty,” a union leader of central government employees had told the portal.

However, economic experts are worried about the effects of the hike in minimum pay beyond the recommendation of the 7th Pay Commission on the exchequer. “The idea that boosting the minimum pay can help low-pay workers is not a new idea,” they were quoted as saying. But there are very good reasons to carefully consider how a jump in the minimum pay could negatively impact on the exchequer, they added.

Earlier, a leader of a central government employees’ union reiterated the demand for raising minimum pay to Rs 26,000 from Rs 18,000, which was recommended by the 7th Pay Commission. He also demanded to increase fitment factor 3.68 times from 2.57 times for all central government employees and threatened to go on indefinite strike if demands are not met. Central government employees had also sought Finance Minister Arun Jaitley’s intervention after delay on higher minimum pay.

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. Since then, the central government employees have been demanding a hike in minimum pay beyond the recommendation of the 7th Pay Commission.