7th Pay Commission: Will government employees get increased pay package along with arrears?

New Delhi: Central government employees eagerly waiting for the implementation of enhanced pay scale and fitment factor hike under 7th Pay Commission, may hear some good news in April.

As per media reports, the government may however implement the arrears to the employees.

The Finance Ministry also reportedly has set up a panel that will take a final call on demands of these employees by April this year.

Reports have also added that the central government is working on a strategy to accomodate the concerns of lower-level employees of pay matrix between level 1 and 5 with reports coming in that it is contemplating hike in pay with fitment formula 3.00 times of basic pay of 6th pay commission.

The new scales of pay provide for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e. Secretary, it would go up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary will be Rs 56,100.

However, the central government employees unions had demanded for hiking minimum pay of Rs 18,000 to Rs 26,000. They also demanded that fitment factor be raised from 2.57 times to 3.68 times.

The Union Cabinet had in June approved recommendations of the CPC with 34 modifications, which will mean an additional annual burden of Rs 30,748 crore on the exchequer.

All allowances are given effect from July 1, 2017.

The recommendations benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

The Narendra Modi government has vowed to resolve all the payment, arear, hiked allowances and fitment formula related issues rising out of the recommendation of the 7th Pay Commission.