In what seems to be good news for the Central Government employees, the NDA government is likely to hike the minimum pay and fitment factor of the employees beyond what is offered in the 7th pay commission. As per reports, the increase in minimum pay may be announced in the upcoming Union Budget 2019, which will be presented by the incumbent Finance Minister Nirmala Sitharaman.
It may be noted that the employees of Central government were not happy with the recommendations of the 7th Pay Commission regarding the minimum pay scale and have been demanding an increase of nearly Rs 8,000 along with an increase in the fitment factor by upto 3.68 times.
Meanwhile, the increment in the salary of the government employees after the recommendations of the 7th pay commission led to an increase in demand which has directly affected the economic growth.
Recently, the RBI had cut off repo rate by 0.25 basis point on June 6, after a three-day meeting of the Monetary Policy Committee (MPC) which was headed by the RBI Governor Shaktikanta Das. The first Union Budget of second consecutive term of the PM Narendra Modi-led NDA government is scheduled to be presented on July 5, 2019 by Finance Minister Sitharaman.
(Edited by: Nehal Solanki)