Govt Not To Appoint High Level Committee To Hike Minimum Pay

A four month after Finance minister Arun Jaitley assured central government employees of hiking minimum pay of lower paid employees, the government now decided not to appoint High Level Committee to examine the 7th Pay Commission recommendations in respect of minimum pay and allowances.

“The union cabinet had on June 29 cleared the he long-awaited 7th pay commission recommendations hiking salaries of central government employees as well as pensions, which is facing strong protests from the central government employees unions.

The cabinet had also set up the committee on allowances headed by Finance Secretary to examine the recommendations of 7th Pay Commission on allowances other than dearness allowance for cabinet nod as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. So, there was resentment among employees over suggestions to scrap some allowances.

“The cabinet will not clear any proposal on hike in minimum Pay including others pay related matter under the 7th Pay Commission recommendations because the cabinet had already passed it. Hence cabinet only will take higher allowances which was not given nod by it”, the top Finance Ministry sources today told The Sen Times.

The Central government employees’ Unions have been pressing hard since the cabinet approval the recommendations of 7th Pay Commission for hiking minimum pay.

The Union Home Minister Rajnath Singh, Finance Minister Arun Jaitley and Railways Minister Suresh Prabhu then stepped in and assured the unions leaders the day after the cabinet appoval that the issues raised by them would be considered by the High Level Committee, which will soon be set up and the government will take steps accordingly.

The Unions are demanding minimum pay Rs. 26,000 instead of Rs 18,000 with 3.68 fitment factor, while the cabinet approved fitment factor 2.57.

“The minimum pay of central government employees Rs 18,000 was made on recommendations of the 7th Pay Commission. But government will consider hiking it after discussions with all stakeholders,” Finance minister Arun Jaitley had said at that time.

“The central government has finally decided not to give any facility to central government employees better than the 7th Pay Commission recommendations and the government will also stick with the 7th Pay Commission recommendations on pay scales and allowances like advances,” the finance ministry top sources added.

However, the Finance Ministry is gearing up to get cabinet nod on the higher allowances shortly, but the quantum of allowances may not vary from those proposed by the 7th Pay Commission as the committee on allowances sticks with the 7th Pay Commission’s recommendations on allowances.

Its reveals that the government and the 7th pay commission recommendations gave more agony for the central government employees.