7th Pay Commission: New pay hike from April 2018

7th Pay Commission: New pay hike from April 2018

A top Finance Ministry official, who did not wish to be named told on Tuesday said that new pay hike for central government employees would come into effect from 1 April 2018.

He said that National Anomaly Committee (NAC) is likely to submit report on new pay hike by December.

The new pay hike will come into effect by April next year at the latest, he added.

Earlier, the government gave nod the 7th Pay Commission proposal of minimum basic pay from Rs 7,000 to Rs 18,000 per month while the maximum basic pay from Rs 80,000 to Rs 2.5 lakh with a fitment factor of 2.57 times uniformly of sixth pay commission's basic pay.

Expressing dissatisfaction over the recommendations of the 7th Pay Commission, various central government employees' unions had threatened to go on an indefinite strike from 11 July, 2016.
Finance Minister Arun Jaitley was under pressure to assure to hike minimum pay for the central government employees day after the cabinet approval of the 7th Pay Commission's recommendations, June 30, 2016, when he had met representatives of several central government employees' unions in home minister's house with other two cabinet ministers - Rajnath Singh and Suresh Prabhu.

The assurance had prevented several central government employees' unions to go ahead with the indefinite strike starting July 11, 2016.

The Unions had asked the government to set up a committee to look into issues raised by them in relation to pay hike.

Jaitley promised the Union leaders that the pay hike issue raised by them would be considered by a High Level Committee. Accordingly, he has formed National Anomaly Committee (NAC) in September, 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission's recommendations.

The unions had said the government approved pay hike was the lowest in the last 70 years. They had also accused the government of announcing the awards "unilaterally" without any consultation with them.

The unions had also warned to make employees minimum pay Rs 18,000 to Rs 26,000 and asked to raising fitment factor 3.68 times from 2.57 times.

"The government may come out with a decision in next financial year in this regard on the recommendations of the National Anomaly Committee," he said.

"The government is likely to go ahead for hike in minimum pay Rs 21,000 from Rs 18,000 with fitment factor 3.00. The fitment formula with 3.00 times from 2.57 times, which will be gone up he salary and pension in general for all segments of employees" the official confirmed.

TST