7th Pay Commission: Demanding pay hike beyond the 7th Pay Commission recommendations, central government employees may still find a ray of hope because there is a possibility that Prime Minister Narendra Modi may make an announcement related to pay hike and increasing retirement age to 62 years in his Independence Day speech from Red Fort. Their hope hinges in the Modi government's earlier decision of awarding 14 percent salary increase from January 2016. But the price rise in basic commodities seem to have discouraged their earlier enthusiasm.

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High economic growth in quarterly figures has rekindled their hope, and they also believe that Union Minister Arun Jaitley's promise on June 30, 2016 to hike their pay beyond the recommendations of 7th Commission would be taken care. The pressure of next year's general elections is a key reason that may compel the Modi government to think of not annoying this huge chunk of voters. 

Since this year's address from Red fort would be the Prime Minister's last speech of this tenure, employees expect he may either make an announcement related to pay hike or may raise their retirement age to 62 years from 60. The expectations are high, as the BJP-ruled Madhya Pradesh, going for assembly polls by end of this year, has made such announcement.

Besides this, many state governments including Tripura also vowed to provide the 7th Central Pay Commission benefits to its employees. Tripura Deputy Chief Minister Jishnu Dev Varma while presenting the 2018-19 Budget said Rs 1,000 crore has been provisioned to offer the benefits to the state employees. He said the 7th CPC recommendations will be implemented once the PP Verma Committee submitted its report.

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Recently, the central government also approved the salary hike for pensioners, teaching and non-teaching staff of the central universities and deemed universities under UGC, benefitting about 23 lakh of staff. The government is likely to incur Rs 6000 to Rs 18,000 on this front.