Modi Govt May Decide On Minimum Pay Hike For 50 Lakh Employees

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New Delhi: Central government employees can expect to hear some good news as the Narendra Modi government is likely to decide on minimum pay hike soon. According to sources, the government is seriously considering a hike in minimum pay for its nearly 50 lakh employees and a final decision is expected in January 2018.

The news comes nearly three months after the Narendra Modi-led Union cabinet approved the recommendations of the Seventh Pay Commission on allowances.  A hike in minimum pay has been one of the long-standing demands of Central government employees who have been asking for a pay that meets industry standards. The 14.27 per cent hike in basic pay for government employees under the Seventh Pay Commission was the lowest in 70 years. Central government, said sources, is considering increasing the minimum basic pay for employees from the existing Rs 18,000 to Rs 21,000 per month.

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However, close to 50 lakh central government employees have been demanding that the minimum basic pay be increased to Rs 25,000 per month. The government-constituted National Anomaly Committee will hold a crucial meeting sometime next week to discuss a possible hike in minimum pay.

Speculations are rife that the Central government may consider implementing the salary hike with effect from January 1, 2016. The Union cabinet approved the recommendations of the Seventh Pay Commission on House Rent Allowance (HRA) and other allowances, with some modifications, on June 28. Nearly 1 crore Central government employees and pensioners benefitted from the revision in allowances.

Recently, the Odisha government announced revision of pay scales for its eight lakh employees and pensioners ahead of the festive season.  “My government has decided to implement the recommendations of the committee constituted for examination of the Seventh Pay Commission and its adoption for state government employees,” Odisha Chief Minister Naveen Patnaik said while announcing the decision.