7th Pay Commission: This is how Modi Cabinet may soon make Central government employees happy

7th pay commission: After showering 10 per cent reservation benefits in jobs and educational institutions for the general category on the economic basis, the Narendra Modi government is likely to please about 68 lakh central government employees who have been demanding hike in pay as well as fitment factor beyond the recommendations of the 7th pay commission report. According to sources, the government in its next cabinet meeting may discuss the issue related to the 7th CPC and take a decision to increase minimum pay from present Rs 18,000 to Rs 21,000 per month, besides hiking the fitment factor. 

A senior finance ministry official told zeebiz.com/hindi that the government is sympathetic to the demands of the central government employees and wants to extend the economic benefit to them. Prime Minister Narendra Modi has already indicated in this regard stating that the salary of these employees has not increased as per their demand, therefore minimum pay can revised.

The sources further said that the fitment factor which is now 2.57 per cent can also be raised to 3.68 per cent. Another official indicated that Finance Minister Arun Jaitley would rather please lower rung employees more than middle rung staff. 

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Those employees who come under pay level matrix of 1 to 5 can have salary hike from present Rs 18,000 to Rs 21,000, as the government is not in favour of increasing it beyond the recommendations of 7th pay commission report. 

On the contrary, the central employees seek three times pay hike, but that is not commensurate with their demands. Employees unions, however, demanded hike of 3.68 times to put the minimum salary at Rs 26,000.

Notably, the government is also working on a system for 68 lakh central government employees and 52 lakh pensioners, wherein it is planning an automatic hike in salary if dearness allowance (DA) reaches over 50 per cent of the basic pay. This system may be initiated as an automatic pay revision system.