7th Pay Commission: Here's why Modi government may increase pay beyond 7th CPC recommendations

New Delhi: The year 2018 may bring further good news for Central government employees, with reports pouring in that the BJP-led NDA government at the centre is considering increasing the salary of low-level officials, from matrix level 1 to 5 and go beyond the recommendations of the 7th Pay Commission.

At present, the Central government employees are getting basic pay according to the fitment formula of 2.57 of the basic pay and if this big step is taken, it will come as a massive news for the Central government employees.

Several media reports are saying that any hike beyond the recommendations of the 7th Pay Commission may be initiated keeping in view the upcoming General Elections in 2019.

Even though the Narendra Modi government could well revise the fitment factor three times, resulting in higher salaries for the employees, the hike won’t come into effect before the next financial year. The government reportedly plans to send the proposal to the Cabinet at the start of the next financial year.

Following the implementation of the recommendations of the 7th Pay Commission, the basic pay of Central government employees went up from Rs 7,000 to Rs 18,000 per month based on the fitment factor of 2.57, and effective from January 1, 2016.

Initially, the 7th Pay Commission report had recommended a basic salary of Rs 18,000 but that led to protests from the government employees who demanded it to rise further to Rs 26,000.

Now, if the reports are to be believed, the employees falling in the pay matrix level 1 to 5 will get a salary hike after the proposal is sent to the Cabinet in the beginning of April for approval. Finance Minister Arun Jaitley in 2016 had promised to hike the pay of the central government employees beyond the suggestion of the 7th Pay Commission.

Meanwhile, there are reports suggesting that the government would not pay arrears on pay hike to the Central government employees. This proposal will be reportedly placed before the Cabinet by Finance Minister Arun Jaitley in April.

Based on the report of Committee on Allowances (CoA) and the recommendation of E-CoS, the Cabinet had earlier approved the modifications in 34 allowances in its meeting held on 28th June 2017. All allowances are given the effect from 1st July 2017. It will benefit 34 lakh civilian employees and 14 lakh defence personnel.