Oct 1, 2017

Minimum Wages under 7th Pay Set to Hike-Points to note

The Central government employees have a reason to rejoice as the Modi government is likely to increase their minimum basic pay from Rs 18,000 to Rs 21,000 per month soon. According to media reports, the National Anomaly Committee (NAC) is likely to meet next month for reviewing the basic pay structure and may recommend a hike in the minimum basic pay from Rs 18,000 to Rs 21,000 per month as against the current demand of getting it increased to Rs 26,000. Here are five things to know about this development:

1. The Modi government had a few months back approved an increase in the minimum basic pay of Central government employees under the 7th Pay Commission from Rs 7,000 to Rs 18,000 per month while the maximum basic pay was increased from Rs 80,000 to Rs 2.5 lakh.

2. Central government employees’ unions, however, were not happy with the hike in the minimum basic pay and wanted it to be increased to Rs 26,000.

3. Keeping this in view, the National Anomaly Committee is likely to meet in October for reviewing the basic pay structure. As per sources, the minimum basic pay is likely to be increased from Rs 18,000 to Rs 21,000.

4. Along with this, the fitment factor for basic pay is also likely to be raised to 3 times from 2.57 times as recommended by the 7th Pay Commission.

5. Under the 7th CPC, the earlier system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix has been introduced. The CPC has introduced index of rationalisation for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy. In this context, the CPC has enhanced the minimum pay from Rs 7000 to 18000 per month. With this the starting salary of a newly-recruited employee at the lowest level is currently Rs 18000 whereas for a newly-recruited Class I officer, it is Rs 56100.

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