7th Pay Commission: Lower-level employees may see pay, fitment factor hike in April

Union Finance Ministry has reportedly set up a panel to take a final call on demands of these employees by April this year.

The central government employees especially the lower-level ones, may finally expect some good news related to 7th pay commission, as reports suggest that Finance Minister Arun Jaitley plans to increase the minimum pay and fitment factor for them, which would be effective from April 1, 2018. 

 

According to The Sen Times, the government employees, who receive salaries from pay matrix level 1 to 5, are expected to receive hike in minimum pay scale to Rs 21,000 from Rs 18,000 from April 1, 2018. 

 

These employees will reportedly see an increase in their fitment factor from 2.57 times to 3.00 times of the basic pay of 6th Pay Commission. 

 

An official told the newspaper that FM Jaitley will prefer to pick and choose lower-level employees and pay hike accordingly rather than salary hike for middle-level employees. 

 

Further, the report said that the broad middle-level employees will not see much of a raise, mirroring a long-running trend of income polarization and a shrinking middle-level staff in the central government departments.

 

The official also highlighted that the FM is looking into the matter ignoring the DoPT letter on October 30, 2017, and would take up the matter with the respective stakeholders to implement pay hike from April.

 

On February 12, the Finance Ministry directed the merger of all Group B officers with Group C staff cadres of all Directorates under Central Board of Excise and Customs (CBEC). 

 

It may be noted that if hike in minimum pay and fitment factor is on the way, the central government employees may not see arrears in pay commission. 

 

Last week, reports said that the government might implement the new salary from April 2018, but it is in no mood to give arrears to the employees. 

 

Earlier, it was known that financial advisors to the government are of the view that arrears on higher minimum pay will bring an extra burden to the exchequer. 

 

Meanwhile, the government or the department concerned or the ministry is yet to confirm in regards to pay scale and fitment factor.