7th Pay Commission: Salaries to be raised at fitment factor of 3 times; no protests, but here is what government employees unions wanted

7th Pay Commission: It has emerged that the Union government is virtually certain to not listen to government employees demands and issue orders to hike salaries of staff by fitment factor of 3.00 times to a minimum pay of Rs 21,000. The demand for hiking the pay by 3.68 times has in all probability been junked. Various reasons were forwarded for that, from huge bank scams to rising deficit stemming from fact that there are lakhs of employees and pensioners involved. Unions wanted minimum pay at Rs 26,000 instead of Rs 18,000, but will have to settle for less. In fact, way back in July, 2016, they had threatened to go on strike, but had backtracked after Finance Minister Arun Jaitley made assurances to look into their concerns on salaries and fitment formula. This had been done in the Rajya Sabha on July 19, 2016.

A number of trade unions are involved in the issue. ET Now revealed that a number of trade unions are involved among them are All India Trade Union Congress (AITUC), Indian National Trade Union Congress (INTUC), Centre of Indian Trade Unions (CITU), Trade Union Coordination Centre (TUCC), All India United Trade Union Centre (AICCTU), United Trade Union Congress (UTUC) and others.

Be that as it may, the 7th Pay Commission had initially recommended minimum pay hike from Rs 7,000 to Rs 18,000. A fitment factor of pay fixation was fixed at 2.57 times of basic pay. The Cabinet had fixed its stamp of approval on the same.  

And what of future? No one is willing to react as it is too early to say anything before any official announcement is made. It is a wait and watch time for government employees even as anxiety among them rises. Policymakers, on the other hand, have to see how much of the funds under their aegis they can distribute without affecting the larger economy.