Dec 29, 2017

7th Pay Commission: New Year, New Minimum Pay

New Delhi: Those fighting for a higher minimum pay have cause to celebrate, as the start of 2018 means government raising the minimum pay go into effect from the same year. Additionally, the pay gap adjustments will be made to raise 1:12 instead of current 1:14 in respect of minimum pay and maximum pay.

Earlier, The 7th pay panel recommended minimum pay from Rs 7,000 to Rs 18,000 per month while the maximum pay from Rs 80,000 to Rs 2.5 lakh with a fitment factor of 2.57 times uniformly of basic pay of 6th pay commission and the recommendations got the Cabinet nod on June 29, 2016.Efforts to raise the minimum pay paid off in 2016, and as the movement has gained momentum—when central government employees’ unions had threatened to go on an indefinite strike over minimum pay hike on July 11, 2016.

The Unions have been demanding minimum pay Rs. 26,000 instead of Rs 18,000 with 3.68 fitment factor.

The unions had called off their indefinite strike after they had met the Finance Minister Arun Jaitley, Home Minister Rajnath Singh and other Cabinet Minister Suresh Prabhu on June 30, 2016 and the ministers assured the unions leaders that a High Level Committee would look into the increasing minimum Pay and fitment formula.

Accordingly, the government officially announced that a High Level Committee would be formed to address the employees’ demands.

So, the government formed the 22-member National Anomaly Committee (NAC) headed by Secretary, Department of Personnel and Training (DoPT) in September, 2016 instead of High Level Committee to look into pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

In the meantime, DoPT issued a letter on October 30 stating that the demand for increase in minimum Pay and fitment formula do not appear to be treated as anomaly, therefore, these do not come under the purview of NAC.

The top official in the Finance Ministry said that the government would like to review the DoPT letter, because the DoPT ​​has issued the letter against Finance Minister’s promise to hike minimun pay.

The Finance Minister Arun Jaitley remains committed to hike in minimum pay beyond the 7th Pay Commission recommendations for the central government employees and he is likely to give nod the pay ratio 1:12 instead of current 1:14 in respect of minimum pay and maximum pay, he confirmed.

The the current target for the unions and economists is hiking minimum pay —the debate over whether raising minimum pay for central government employees is a good idea will likely become even more heated in 2018.