7th pay commission: Festive season starts, will central government employees have something to celebrate? Catch in it

7th Pay Commission: Centre may well go for a pay hike before the 2019 General Elections, but central government employees may not get what they want.

7th Pay Commission: There are about 48.41 lakh central government employees and 61.17 lakh pensioners.

7th Pay Commission: Central government employees have been making demands that have been snubbed so far. However, Union Minister Rajnath SIngh has held out hope. But that was for All India Railwaymen's Federation, which too has been making various demands including pay hikes. This has been the first positive move by the Union government regarding seventh pay commission salary hikes after months of silence. But, there was no mention of whether this announcement would span the central government employees. Another aspect that has also arisen is that the government may be mulling a salary hike, but below the one that has been demanded by the staff.

Centre may well go for a pay hike before the 2019 General Elections. The central government employees have been getting the pay as per the recommendations of the 7th pay commission based on a fitment factor of 2.57 times, setting the minimum salary at Rs 18,000. Central government employees have been demanding a pay hike by a fitment factor of 3.68 times. A hike by 3.68 times will set the minimum salary at Rs 26,000.

The expenditure would be very heavy for the government if this is agreed to. Already RBI leaves no opportunity to flag just the 7th Pay Commission HRA effect on inflation. The same applies now. So, the likelihood is that, if and when pay hike order comes, then it may be lower. That means,a fitment factor hike can be anything between 2.75 times to just under 3 times. Minimum salaries at lowest level will therefore, jump above Rs 20,000 mark, which is a psychologically critical aspect for staff..

There are about 48.41 lakh central government employees and 61.17 lakh pensioners.

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Recently, states like Madhya Pradesh, Rajasthan and others have announced pay hikes for their employees. These states are going to polls over the next few months. These developments have kept the central government employees hopes regarduing a 7th pay commission fitment factor hike very much alive.

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