7th Pay Commission: Despite good news on economic front, salary hike for government employees as per demands not coming

7th Pay Commission: Government employees who have been waiting anxiously and patiently for a long time for the Centre to announce some good news for them on their salaries have had their hopes dashed. Central government has clarified that the government is not considering any hike. This was indicated in Parliament in an exchange between as Union minister and Samajwadi Party leader Neeraj Shekhar. This was in effect, officially announced by the Central government in a reply dated March 6 by Minister of State for Finance P Radhakrishnan. Shekhar asked whether Centre was considering any hike in government servants pay and minister answered in the negative. Shekhar had asked whether government is thinking of increasing basic pay from Rs 18,000 to Rs 21,000 and fitment factor from 2.57 to 3 under the 7th Pay Commission. He said that the minimum pay of Rs 18,000 p.m. and 2.57 times fitment factor are based on the 7th Central Pay Commission recommendations and "Therefore, no change therein is at present under consideration". 

Government staff wanted hike based on fitment factor of not 3.00 times, but 3.68 times. What has weighed on the government's mind is the revenue deficit that may balloon in case the 7th pay commission based pay hikes are increased to 3.00 or higher fitment factors. Revenue deficits have the potential to hit economy and government must keep it in control. However, with a number of global and Indian agencies saying that the economy is set to grow comfortably and India will remain one of the fastest growing economies globally, hope had risen among government employees for some good news. However, Centre has to look at a lot of priorities and allocate resources accordingly to ensure India as a whole grows as best as possible.

So, here is how the calculation will run now. The 7th Pay Commission salary applicable Level in the Pay Matrix is calculated by multiplying the existing basic pay by a factor of 2.57 times and the amount arrived at will be located in that Level in the Pay Matrix. 

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This 7th Pay Commission latest news has disappointed employees and at the same time hit the pensioners too who all together number in millions.