7th Pay Commission: No hike on minimum pay for employees, govt says

After including allowances under income tax ambit, the government has now dismissed demand of increasing minimum pay from Rs 18,000 to Rs 26,000 under 7th Pay Commission.

Rupee. Photo: IANS

Even after waiting for over an year, the government could not meet the demands of the central government employees as per 7th Pay Commission.

The government has now decided to not increase the minimum pay to Rs 26,000. The government employees unions were demanding hike on minimum pay from Rs 18,000 to Rs 26,000 under 7th Pay Commission.

However, earlier, the government had said that they will look into this issue, as reported by OneIndia. But, now the government has decided "not to go ahead" with the demand.

The government's decision came in as another blow for employees, after Finance Ministry officials said that revised allowances as per 7th CPC will come under the ambit of Income Tax.

Earlier this week, the Finance Ministry officials had announced that the new allowances will be taxed as proposed under Finance Bill 2017.

After the Union Cabinet approved the recommendation of 7th CPC on June 28, the employees have raised various concerns over the revised salary and allowances.

They had also demanded the allowances to come into effect with arrears from July 2016. However, under the modified 7th CPC, Cabinet said that the allowances will come into effect from July 2017.

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