Seventeen months after the 7th pay commission recommendations were announced by Finance Minister Arun Jaitley in the Parliament, the Modi government is now working to transform minimum wage hike into a reality. Once the minimum wage hike is in place, it would touch the lives of 48 lakh government employees. According to reports, the minimum wage hike would be helpful for lower-level employees across grade 1 to 5.
According to reports, an official in the FM office said that the government is committed to increasing the minimum wage of central government employees. Furthermore, reports say that the government is trying to hike the minimum wage in pay with fitment formula 3.00 times of basic pay of 6th pay commission.
The new scales would increase the entry-level basic pay to Rs 18,000 from Rs 7,000. For Class 1 officials, the starting salary would be Rs 56,000. For the highest level, which is Secretary, it would go up to Rs 2.5 lakh from Rs 90,000.
However, government employees have been urging for a hike in minimum pay for Rs 26,000, with a fitment formula of 3.68 times.
In June 2017, the Union Cabinet had approved CPC recommendations with 34 modifications, adding Rs 30,748 crore on the exchequer.
All allowances are given effect from July 1, 2017.
Including the 48 lakh central government employees and 58 lakh pensioners, the 7th Pay Commission recommendations would affect more than a crore employees.