Key Highlights

  • NAC will meet this month to decide change in pay structure of central government employees.
  • Fitment factor may increase up to three times.
  • Basic pay may increase to Rs 21,000 from next year.

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National Anomaly Committee, which is scheduled to meet this month, is likely to raise the fitment factor to three times, a report by OneIndia said on Monday.

Hike in minimum pay for central government employees may get implemented from January 2018. Increment of the fitment factor from the current 2.57 times would raise the minimum pay to Rs 21,000 from the existing Rs 18,000.

Discussions of the NAC will be followed by a report to the Department of Expenditure. Once approved, then the matter would be placed before the Union Cabinet, the report said.

An earlier report said that there has been a modification to the 7th Pay Commission pay matrix level. Finance Ministry will be improvising this matrix.

The Pay Matrix starts at Rs1,18,500 at Cell one and ends at Rs2,14,100 at Cell 21, the ministry said, adding that the said level has been modified.

This ‘Index of Rationalisation’ has been applied by the Commission on the minimum entry pay corresponding to the successive Grades Pay in the pre-Revised pay structure, the report said.

Speculation over the committee’s decision suggested that the rise in minimum pay will not be applicable only to working employees but also pensioners.

Reports are also in about the government considering variable pay as something it has been contemplating.