GOOD NEWS, 7th Pay Commission : New Year, New Minimum Wage, New Benefits For Central Government Employees

Those who are struggling for a higher minimum pay under 7th Pay Commission may not have to wait for more, as the start of 2018 means that the government is raising the minimum pay which will go into effect from the same year.

Additionally, the pay gap adjustments will be made to raise 1:12 instead of the current 1:14 in respect of minimum wage. Around 48 lakh central government employees unions had threatened to go on an indefinite strike over minimum wage hike on July 11, 2016.

In 2016, the 7th Pay Commission panel had recommended minimum pay from Rs 7,000 to Rs 18,000 per month while the maximum pay from Rs 80,000 to Rs 2.5 lakh with a fitment factor of 2.57 times uniformly of basic pay of 6th pay commission and the recommendations got the Cabinet nod on June 29, 2016.

The employees union have demanded minimum pay of Rs 26,000 instead of Rs 18,000 with a fitment factor of 3.68.

The unions had also called off their indefinite strike after they had met Finance Minister Arun Jaitley, Railway Minister Suresh Prabhu and Home Minister Rajnath Singh. The trio ministers had assured the union leaders that a High Level Committee would look into the increasing minimum pay and fitment formula.

The government then announced that a High Level Committee would be formed to address the issue related to hike in minimum wage.

After which the government formed the 22-member National Anomaly Committee (NAC) headed by Secretary, Department of Personnel and Training (DoPT) in September 2016, instead of High Level Committee to look into pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

Meanwhile, DoPT issued a letter on October 30 stating that the demand for an increase in minimum Pay and fitment formula does not appear to be treated as an anomaly, therefore, these do not come under the purview of NAC.