The central government employees have been waiting too long for a hike in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission or 7CPC.
Fitment factor
Fitment factor is a figure used by 7th CPC with which the basic pay in 6th CPC regime (i.e Pay in Pay band + Grade pay) is multiplied in order to fix basic pay in revised pay structure (i.e 7th CPC). Fitment factor formulated by 7th CPC is 2.57.
However, the government as not yet taken any decision on the paying the minimum basic pay demanded by the central government employees beyond 7th Pay Commission recommendations.
All we know so far is the government has been considering automatic pay revision mechanism when Dearness Allowance (DA) will rise above 50 percent.
Dearness Allowance
The Dearness Allowance (DA) is a cost of living adjustment allowance paid to Government employees, Public sector employees (PSE)and pensioners in India, Bangladesh, and Pakistan.
Dearness Allowance is calculated as a percentage of an Indian citizen’s basic salary to mitigate the impact of inflation on people.
According to the reports, the hike in minimum pay and fitment factor beyond what has been recommended in the 7th Pay Commission would be done when the Dearness Allowance rises above 50 percent.
Punjab National Bank Fraud As A Hindrance
The recent Punjab National bank fraud over Rs 11,000 crore might also act as a hindrance in getting a rise in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission.
It is also likely that the government may consider hike but not as much as having been demanded by the central government employees.
Maharashtra Government On 7th Pay Commission
The Maharashtra government too has cleared arrears payment based on 7th Pay Commission report for employees this year, the government might take a decision by April 1.
The chief minister Devendra Fadnavis led government in the Maharashtra assembly announced that it will implement the 7th CPC report from the current fiscal and give it retrospective effect from 01/01/2016.
Considering there are as many as 18 lakh government employees and pensioners involved, the payout over a certain period of time will be Rs 23,000 crore of which Rs 10,000 cr has been marked out in this budget itself.
Rajasthan Government On The 7th Pay Commission
The Rajasthan government has announced that it would provide benefits under the 7th Pay Commission recommendations to nearly 12.5 lakh employees and pensioners in the state with effect from January 1, 2017.
This would put an additional yearly burden of Rs.10,400 crore on the government and the arrears would be paid in three installments, said state Industries Minister Rajpal Singh Shekhawat.
The Tripura Government On The 7th Pay Commission
The Tripura government will form an expert committee regarding the implementation of the 7th Pay Commission recommendations for the state government employees, the new Chief Minister Biplab Kumar Deb said today.
This decision was taken at the first meeting of the council of ministers held in Agartala during the day, Deb, who took oath as the chief minister in presence of Prime Minister Narendra Modi yesterday, told a press conference.
Central Government Employees Demanded To Raise Minimum Pay
Originally, hike in the minimum pay from Rs 18,000 to Rs 21,000 and fitment factor to 3.00 times from 2.57 times were the recommendations of the 7th Pay Commission. The central government employees, however, have demanded raise minimum pay from Rs 18,000 to Rs 26,000 and fitment factor 3.68 times from 2.57 times, beyond the recommendations of the 7th Pay Commission.
Indian Railways Employees Demanded A Hike
Indian Railways employees are demanding a hike in minimum pay, beyond the recommendations of the 7th Pay Commission, and withdrawal of the National Pension System (NPS).
The Railways’ employees, who get salary as per the recommendations of the 7th Pay Commission, want the minimum wage to be raised to Rs 26,000 from Rs 18000.
The 7th Pay Commission had recommended a 14.27 percent hike in basic pay, raising minimum pay from Rs 7,000 to Rs 18,000 month with fitment factor 2.57 times, which was approved by the government in 2016.
When Will The Hike Be Made Effective And By How Much?
The answer is that the government is reportedly mulling to make the minimum basic pay to be Rs 21,000, which is lesser than what the employees demanded and more than what the 7th Pay Commission recommended. The fitment factor will be 3 times the basic pay of 6th Pay Commission. The hike will be implemented in April.
Video On Seventh Pay Commission
