Good news to the Central government employees, Modi Government is planning to increase the minimum salary of Central government employees. Currently, the minimum wage of central government employees is 18000 under the seventh Central Pay Commission. If reports are to be believed, the minimum payment will be 21000.
According to the reports, PM Modi led government is thinking seriously about the option to raise the minimum salary for all central government employees to Rs 21000 from 18000. However, the employees are demanding to hike it to Rs 25000.
This move will help the low paid employees to a large extent. The government further added this decision would help eliminate poverty and encourage the economy. Under the suggestions by Seventh Central Pay Commission, the last pay panel fixed the basic pay at Rs 7000, which is hiked to Rs 18000 by multiplying with 2.57 under the fitment formula. On the other hand, the central government employees demand minimum pay to be increased to Rs 25000 by 3.68 of fitment formula.
If the decision is approved, the implementation would be effective from January 1, 2016. The legislation requires an adjustment to the Customer Index Price (CPI) inflation measure. On June 28, the Union Cabinet approved the recommendation of 7th Central Pay Commission with 34 modifications. The increased allowances based on the Committee on Allowances (CoA) came in to effect from 1 July 2017.
Meanwhile, Odisha Chief Minister Naveen Patnaik announced the implementation of the seventh Central Pay Commission recommendations for 8 lakh employees and pensioners. Patnaik said, around 4.5 lakh present serving state government employees and 3.5 lakh retired employees will be benefited. He also said, “The state government employees will get pay hike from September salary onwards.”