7th Pay Commission: Minimum salary of central government employees to be hiked to Rs 21,000, says report

In another good news for the central government employees, Modi government might increase their minimum salries from Rs 18,000 to Rs 21,000, said a report by OneIndia. Any official confirmation on the report is still awaited.

The last pay panel had pegged basic pay at Rs 7,000, which was increased to Rs 18,000 by multiplying it with 2.57 under the fitment formula suggested by the 7th Pay Commission. Central government employees, however, have been vying for minimum salary to be hiked to Rs 25,000 on the basis of fitment formula of 3.68, the report said.

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If this decision to further hike salaries is approved, chances are that it will be implemented with retrospective effect from January 1, 2016. This was done as the legislation would require an adjustment to the Consumer Price Index, the report added.

Meanwhile, the state government employees of Odisha have a reason to rejoice too, as recommendations of 7th Pay Commission for them could be approved by the State Cabinet scheduled to meet today, reports stated. The Cabinet will deliberate whether the recommendations should be modified or implemented as they are.

The total arrears to be paid to around eight lakh employees and pensioners is likely to amount to Rs 9,000 crore. The Odisha government is yet to decide how these arrears will be disbursed - in instalments or will be transferred to the general provident fund of employees.

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