Tuesday, September 5, 2017

Central Govt. likely to hike minimum pay and fitment factor

After the government cleared the recommendations of the 7th Pay Commission, it is set to increase the minimum pay. This would be effective January 1 2016.
The demand by the unions is to increase the basic minimum payfrom Rs 18,000 to Rs 25,000. Under consideration is those employees who work well but are low paid. The government feels that there would be no harm in increase the basic minimum pay if the lower paid employees work well. This would provide to solve employees' economic problems, eliminating poverty and stimulating the economy.

There is some scope to change in minimum pay to Rs 21,000 from Rs 18,000, which was approved by the cabinet, as per sources from Finance Ministry.

The central government employees unions are demanding for hiking minimum pay Rs 18,000 to Rs 26,000 and the and asked to raising fitment factor 3.68 times from 2.57 times.

The government had formed a 22-member National Anomaly Committee headed by Secretary, Department of Personnel and Training (DoPT) in September, 2016 to look into pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

After due hearing and by majority vote of all its stakeholders, the National Anomaly Committee may recommend to hike minimum pay to Rs 21,000 from Rs 18,000.

It is not clear whether the fitment factor will be increased for all employees or not.
(With inputs from Oneindia.com and Sen Times)

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