7th pay commission: Quarterly economic growth numbers raise hope for hike in basic pay

Around 50 lakh central government employees are again hopeful that Modi government would fulfil their demand of hike in minimum basic pay.  The expectateions of the employees were shunted down when  the government has earlier denied any pay hike beyond the recommendation of the Seventh Pay Commission. 

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. 

Denying the reports hinting towards the salary hike, Minister of State for Finance P. Radhakrishnan had said that at present the government has no plans to increase the minimum salary beyond the seventh pay commission recommendations. 

But now 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. 

Currently, the Central government employees are getting basic pay according to the fitment formula of 2.57. 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.

Earlier in June, the Narendra Modi government announced a move under seventh pay commission that could bring good news for around retired 27 lakh employees. The Central government has said that it has revised the pension of retired faculty and other non-teaching staff in central universities and colleges under the 7th CPC. 

Union HRD Minister Prakash Javadekar took to his Twitter account to inform that according to 7th Central Pay Commission  the centre government has raised the pension of retired faculty and other non-teaching staff in central universities and colleges. 

He further said that the latest move would benefit around 25,000 present pensioners in educational institutions.

Javadekar informed that the mentioned 25,000 pensioners would be given financial benefits from Rs 6,000 to Rs 18,000. "Around 25,000 present pensioners will benefit in Central Universities and the UGC maintained deemed to be universities to the tune of Rs 6000 to Rs 18, 000," he said. 

Besides the pensioners, Modi government's latest decision would also impact approximately 23 lakh employees, those got retired from state universities and affiliated colleges and also those who have adopted the prescribed pay scales.