7th Pay Commission: Around 50 lakh government employees and about an equivalent number of retirees are eagerly waiting for a hike in their salaries and pensions. They have made this demand and authorities at the highest levels, even Union Minister Arun Jaitley, have reacted positively. However, central government employees have been left disappointed as no action has followed the reassurances given to them. Famously, they had threatened to go on strike and the government had scrambled to reassure them about a positive outcome. The threat of strike was withdrawn thereafter. The demand is to hike the fitment factor beyond the recommendations of the Seventh Pay Commission from the present 2.57 times to 3.68 times and the minimum salaries to be hiked to Rs 26,000. As general elections 2019 near, their expectations have soared the belief has veered round to thinking that the government is in a mood to placate everyone. The recent hike in minimum support price (MSP) is another trigger that has fuelled hopes of Central and state government employees. The reasoning is that the Centre has given so many sops to various segments of society and government, that it will not be able to hold off giving it to them too.

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Speculation is rife that the government may make an announcement on the pay soon. It may happen faster if Centre decides to hold general elections earlier than the targetted dates in 2019. 

However, to the disappointment of government employees, P Radhakrishnan, the Minister of State for Finance, had stated in the Lok Sabha 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. 

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If the government agrees to their demands, a 7th CPC based hike would incur, at the very least, a Rs 26,000 crore hit on their finances. 

The employees are still hopeful as many state governments including J&K, Tripura and Madhya Pradesh, have already taken steps to give their employees benefits as per the 7th pay commission.