7th Pay Commission: Minimum pay of central govt employees likely to increase from Rs 18,000 to Rs 21,000

New Delhi: With the government planning a hike in minimum pay under the 7th Pay Commission, there might be some good news for the central government employees.

The Ministry of Finance is likely to increase the minimum pay of the central government employees to Rs 21,000.

The existing minimum pay is at Rs 18,000. Once the government gave its approval for the pay hike it would be at Rs 21,000, according to media reports.

hen the Union Cabinet approved the implementations under the 7th Pay Commission, the ministry had fixed the minimum pay at Rs 18,000, keeping in mind the fitment factor at 2.57. Now, the government is considering raising the fitment factor to 3 times.

However, several media reports suggested the central government employees unions were demanding a 3.68 fitment formula.

The move will help in the elimination of poverty and stimulate the Indian economy further, say government officials quoted in media reports.

This is how fitment formula works

The minimum pay was fixed at Rs 18,000 by the finance ministry last time. The basic pay was kept at Rs. 7,000. They multiplied it by 2.57 fitment factor, which came to Rs. 18,000.

However, if the government gave a go ahead signal with the 3 fitment formula, the number will change to Rs 21,000.

Meanwhile, the employees were demanding 3.68 fitment formula, which is Rs 25,000.

7th Pay Commission's approvals for central government employees happened on July 29 and have been implemented from January 1, 2016. The move has impacted over 48 lakh central government employees and 52 lakh pensioners.