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7th Pay Commission: Good news for employees, 16% increase in salary

7th Pay Commission: Good news for employees, 16% increase in salary

New Delhi  ; In a bid to woo central government employees ahead of 2019 Lok Sabha elections, the government may hike their salaries beyond the recommendations of the 7th Pay Commission or 7th CPC. The government may also increase the retirement age of its employees. The government revised salaries of central government employees in June 2016 as per the recommendations of the 7th Pay Commission.

The 7th Pay Commission raised minimum pay from Rs 7,000 to Rs 18,000 month. Since then, the central government employees have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times from 2.57 times. A report by Sen Times said the BJP government is likely to agree their demands in a bid to return to power in 2019. The report further said the government would follow the footsteps of Madhya Pradesh Chief Minister Shivraj Singh Chouhan who recently the retirement age to 62 years from the current 60.

“Taking a leaf from Chouhan ahead of general elections next year, The BJP-led central government is mulling to implement the pay hike for central government employees,” a senior government official was quoted as saying. Notably, Minister of State Finance, P Radhakrishnan, last month, told Rajya Sabha the government was not considering a hike in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission.



“Besides, the government will also consider raising the retirement age of all central government employees from the present 60 to 62 years. The decisions may be taken to achieve the aim at luring central government employees to turn voters in support of BJP,” the official added. Minister of State for Personnel Jitendra Singh had said in March that there was no plan to increase the retirement age of central government employees from existing 60 years to 62 years.

There has been no clarity on whether the government will hike minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission. Reports have been doing the rounds that the government had given a green signal to the National Anomaly Committee (NAC) for raising minimum pay to Rs 21,000 from Rs 18,000 with fitment factor 3.00. However, the Department of Personnel and Training (DoPT) has denied this.



The two announcements that Prime Minister Modi is likely to make in his speech from Red Fort on 15 August, the Independence Day for central government employees are an increase of pay and the raising retirement age to 62 years from 60,” he added. However, the government, in March, said that it wasn’t considering raising minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission.

“The minimum pay of Rs.18,000/- p.m. and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration,” Minister of State Finance, P Radhakrishnan told Rajya Sabha in a written reply.


The 7th Pay Commission had recommended a 14.27 per cent hike in basic pay, raising minimum pay from Rs 7,000 to Rs 18,000 month, which was accepted by the government in June 2016. Since then, central government employees have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times from 2.57 times.

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