7th Pay Commission: Central government employees may have something to cheer about this Diwali, as the government is expected to increase the salary of these employees soon. There are reports which suggest that the Narendra Modi-led National Democratic Alliance (NDA) government is giving serious consideration to the matter. If the government takes a decision on the 7th CPC pay hike then about 50 lakh central government employees will be benefited. The reports suggest that a final decision may be taken in the November meeting in this regard.
However, there is no formal announcement from the government in this regard. The government recently annnounced a hike in central government employees Dearness Allowance (DA) from 12 percent to 17 percent effective from July. The benefits of the DA hike was received by 50 lakh employees and 65 lakh pensioners. Union Minister Prakash Javadekar earlier said that this was the highest DA increase by the government in the past several years.
The government employees are for long demanding a minimum salary and fitment factor hike. They say that the 7th CPC pay was not inflation-adjusted and all the gains from the salary hike was eaten by the price rise.
The Central government earlier rasied the minimum salary to Rs 18,000 for the employees, but they were demanding for a Rs 26,000 pay and the fitment factor from 2.57 times to 3.68. However, the government has not yet responded to the demand. The government accepted the recommendation of 7th Pay Commission on 29 June 2016 with a 14 percent increase in salary.