7th pay commission: Pay hike happening or not? Here's the truth

It's been a never ending wait for around 50 lakh government employees who have been waiting for a pay hikein their salary beyond the recommendations of the Seventh Pay Commission. While a certain section of media is stating that the pay hike announcement might come on August 15 or before the general elections in 2019. However, earlier, the Minister of State for Finance P. Radhakrishnan in Lok Sabha had said that the Prime Minister's Narendra Modi government is not planning to give any hike in minimum basic salary beyond the recommendations of the seventh pay commission. 

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.

According to a report in the Sen Times, in the wake of 2019 elections, Prime Minister Narendra Modi would announce a salary hike in his August 15 speech from the Red fort. The report claimed that the Prime Minister would announce a hike in minimum pay and fitment factor and raise in retirement age on the Independence Day, 15 August 2018.

The report quoted a government official saying, "Under pressure from the coming general election due by May 2019, the Modi government has indicated that it may hike pay of central government employees beyond the 7th Pay Commission recommendations, seeking to win the Lok Sabha polls because the government knows one government employees can persuade at least 100 voters for the party."

“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,” the report further added. 

Meanwhile, the strong quarterly growth numbers and the fact that general elections 2019 are due, employees are once again hoeful that their much-awaited demand would be fulfilled.

Besides the positive quarterly figures, the employees are also optimistic of Finance Minister Arun Jaitley's promise. FM Jaitley on June 30 in 2016 promised to hike their pay beyond the recommendations of 7th Commission. Experts also belive that 2019's general elections would also force the Central government to fulfil the demands of 50 lakh employees.