The government is planning to hike the basic salaries under Seventh Central Pay Commission of 50 lakh central government employees and a final decision in this regard is expected to come by January 2018.The reports suggest that the fitment factor for basic pay will be raised to 3.00 times as opposed 2.57 times as recommended by the 7th Pay Commission.
This will take the minimum pay from Rs 18,000, in accordance to the recommendations of the pay panel, to Rs 21,000. Central government employees have been demanding that their minimum pay is hiked to Rs 25,000.
The Narendra Modi government had earlier in July approved the recommendations on allowance structure under the 7th Pay Commission, increasing the salaries of around 50 lakh central government employees.
Employee unions, however, have been gunning for a hike in basic pay. The central government employees had expressed their dissatisfaction over the meagre hike in basic pay in accordance to the pay panel.
The National Anomaly Committee is expected to meet sometime around next week to take a final call on increasing fitment factor suggested and approved under the 7th Pay Commission.
Recently, Odisha government chose to implement the recommendations under the 7th Pay Commission. Around 4.5 lakh state government employees and 3.5 lakh pensioners stand to benefit from the hike in pay and pension. This, however, will put a burden of Rs 4,500 crore on the state exchequer every year.
Odisha government has decided to extend Seventh Pay Commission benefits from September 26, considering the festive season starting from September 27 with the onset of Durga Puja. Employees will receive these benefits with retrospective effect from January 1, 2016. State government had agreed to implement 7th Pay Commission last year in September, sometime after Central government announced the new pay panel.