7th pay commission: Here's what govt's planning to do regarding minimum pay hike, fitment factor

The never-ending wait for 50 lakh government employees might get over before the 2019 general elections. According to various media reports, government might revise the minimum basic pay before the 2019 general elections. 

Meanwhile, it has also been regulated that the NDA government may soon make revision in annual salaries and allowances of central government employees. 

According to Sen Times report, the government is mulling over increasing the salaries of the central government employees before the 2019 General elections in a bid to get their support. 

Not only this, the report also claims that following the footsteps of the Madhya Pradesh government, the Centre is also likely to increase the retirement age of the central government employees from 60 to 62 years.

“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 told the Sen Times. 

Below we have listed the latest developments related to the seventh pay commission regarding pay hike and benefits to railways employees, here's a recap of what has happened. 

Salary hike happening or not?
Various conflicting reports have been surfaced in media claiming that despite of the fact that government had denied any pay hike, salary hike and increase in fitment factor for employees upto the pay matrix level 5 would happen. 

Quoting financial ministry sources, the report stated the government is ready to raise minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission for employees upto the pay matrix level 5. 

Earlier this month, the government disappointed around 50 lakh government employees when it denied reports of any pay hike beyond the recommendations of the seventh pay commission. 

"The minimum pay of Rs 18,000 [per month] 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," said Minister of State Finance, P Radhakrishnan in a written reply.

What are employees demands?
Employees are demanding the minimum pay hike of Rs 21,000 instead of Rs 18,000, what seventh pay commission has recommended. 

Currently, the Central government employees are getting basic pay according to the fitment formula of 2.57 of the basic pay and if this big step is taken, it will come as a massive news for the Central government employees. 

Fitment factor is a figure used by 7th CPC with which the basic pay in 6th CPC regime (i.e Pay in Pay band + Grade pay) is multiplied in order to fix basic pay in revised pay structure (i.e 7th CPC). Fitment factor formulated by 7th CPC is 2.57.