7th Pay Commission: Here's what you can actually expect from April 2018

The Modi government is planning to raise the minimum pay from Rs 18,000 to Rs 21,000 from April this year for their employees.

New Delhi: The Narendra Modi government at the Centre is planning to raise the minimum pay from Rs 18,000 to Rs 21,000 from April this year for Central government staff. 

Earlier, this was announced by Finance Minister Arun Jaitley in the Parliament in July 2016. As per reports, Finance Ministry official sources have said that the pay hike plan is expected to be approved in April this year. 

Moreover, the Centre is also reportedly ready to consider going beyond the 7th Pay Commission recommendation for the Central government employees.

Here are top important things about 7th Pay Commission Salary hike you should know:

1. The expected hike from Rs 18,000 to Rs 21,000 will include Central government staff under the pay may matrix level 1 to 5.

2. The fitment factor is expected to be hiked to three from the current 2.57 as per the 7th Pay Commission recommendation, increasing basic salary to Rs 21,000 from Rs 18,000.

3. Narendra Modi government is also expected to decide on revising salaries beyond 7th Pay Commission recommendation anytime in April.

4. Earlier, media reports had claimed the Centre was in a dilemma over considering salary hike beyond 7th Pay Commission recommendations. Central government employees union leaders had earlier claimed that the 7th Pay Commission provided the lowest raise in their salaries in the 70 years.

5. The Central government staff wants more basic pay, in the wake of the increased cost of living and inflation.

6. The Union Cabinet increased DA (Dearness Allowance) and DR (Dearness Relief) this month by two percent for Central government staff. It was put into effect retrospectively from January 1 of this year. This single move helped the Central government employees get 7% of their basic pay as DA in place of the previous 5 percent.

7. No Pay Commission in future? The Modi government is mulling automatic pay revision for around 68 lakh staff and 52 lakh pensioners when the DA will rise above 50 percent. With this move, the government will be spared from appointing pay commission after every 10 years.

8. The 7th Pay Commission recommendations, with 34 modification in allowance structure for Central government staff, were approved by Centre in June last year.