7th Pay Commission: Arun Jaitley may offer good news to govt employees in April

7th Pay Commission: Finance Ministry is mulling over extending salary benefits to low-level officials under 7th Pay Commission by April. Going by recent reports, the Narendra Modi-led government may revise the fitment factor to 3.00 for officials under pay matrix level 1 to 5. This will increase the minimum basic pay to Rs 21,000. Presently, the minimum basic pay for central government employees has been kept at Rs 18,000. 

The last pay panel had recommended 2.7 per cent increase in basic pay of central government employees under the 7th Pay Commission, which increased their minimum basic pay from Rs 7,000 to Rs 18,000. But the central government officials have been demanding fitment at 3.68 times and Rs 26,000 minimum basic pay. 

Finance Minister Arun Jaitley is looking to increase minimum pay to Rs 21,000 and fitment factor to 3.00 for low-level empoleyees, reports say. Finance Ministry may present the proposal before the Cabinet in April, the reports added. 

On June 30, 2016, a day after the Cabinet cleared the 7th Pay Commission recommendations, FM Arun Jaitley had assured central government employees unions that their demand of raising minimum pay would be considered. It seems, they will have to wait further for higher minimum pay. 

7th Pay Commission report recommendations have been drawing a lot of interest from all quarters of government employees from the day it was presented to the time it was accepted by the Centre with suitable alterations. The biggest point of controversy has been over the fitment factor, and the row is still on as the government wouldn't want to imbalance its fiscal equations.  

With the latest reports emanating from state budgets indicating they are in trouble over having cleared the 7th Pay Commission as it is driving revenue deficits, both Maharashtra and Tamil Nadu have indicated so, the Centre too is in a dilemma over what to do. Revenue deficit beoyond a certain point is harmful for the economy and no government will be willing to take that road.