Govt not to hike minimum pay, higher allowances to be paid from April 1

In a setback to central government employees, Centre has decided not to hike minimum pay under the 7th Pay Commission recommendations. Higher allowances and minimum pay under the 7th Pay Commission have been the major bone of contention among majority of the central government employees. The government seems in no mood to increase minimum pay of Rs 18,000 under the 7th Pay Commission. Though the government is expected to announce higher allowances in March, it had no plan to give allowances in arrears from August.

The government has fixed the minimum pay at a meagre Rs 18,000 in the 7th Pay Commission. In the 6th Pay Commission, the basic pay was Rs 7,000. The government multiplied it by 2.57 (fitment formula) and came to Rs 18,000. But the central government employees unions are demanding to hike minimum pay to Rs 26,000 by 3.68 fitment formula. (ALSO READ: Old Rs 500 and Rs 1000 notes may become valid for a month; here’s how)

The government had assured central government employees unions that their demands would be considered and promised to form High Level Committee to examine the 7th Pay Commission recommendations in respect of minimum pay. The government then took a U-turn and decided not to appoint the High Level Committee. It shows the government is no mood to raise the minimum pay under the 7th Pay Commission.