7th Pay Commission: Hike Beyond Recommendations for Central Government Employees: Finance Trading Times

7th Pay Commission: Hike Beyond Recommendations for Central Government Employees

As the elections are approaching, good number of announcements are being made to keep everyone happy. Last week it was the Karnataka State government that declared 30% hike for its state employees under the Karnataka 6th Pay Commission.

Today, it’s the time for the central government employees to rejoice, as the recent news items are pointing to increasing the salary. As per the available news, the BJP led central government 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. 

In essence, the recommendation of the seventh pay commission may be topped-up further and the central government employees may expect more and more benefits to come through. Here are the details of the new expectations:

Salary Benefits May Go Beyond 7th Pay Commission Recommendations

- The official announcement regarding the potential salary hike is expected to be made around the month of April 2018, if the news items are to be believed.

- Under the existing 6th Pay commission structure, the central government employees receive their basic pay based on the fitment formula of 2.57 of the basic salary. As per the reports, this factor may be increased to a value of 3, which will mean that increase in the pay would be substantial.

- However, the reports also say that the potential hike, if any, may come into effect not before the next fiscal year. It means that employees may have to wait longer for realizing the benefits.

- Following the existing 6th pay commission recommendations, the salary of Central government employees was increased from earlier Rs. 7,000 to Rs. 18,000 at present. The 7th pay commission retained this figure at Rs. 18,000, but this was marked with protests from employees. They demanded that the salary should be raised to at least Rs. 26,000.

Modifications to Various Allowances

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 effect from 1st July 2017. It will benefit 34 lakh civilian employees and 14 lakh defence personnel.
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