7th Pay Commission Update: Minimum Wages Likely to be raised by Rs 8,000?


7th Pay Commission fitment factor latest update: Central government employees who have been endlessly waiting for the hike fitment factor may be up for some good updates this month.

If media reports are to be believed, the much anticipated discussion on hiking the fitment factor of central government employees under the 7th Pay Commission might be taken up in July.

Several media reports have said that the government might soon give its nod on raising the fitment factor under the 7th Pay Commission. The central government employees unions have long been demanding for hiking minimum pay of Rs 18,000 to Rs 26,000 and fitment factor be raised from 2.57 times to 3.68 times. If the demand to hike the minimum pay is accepted by the government, the salary of the central government employees will be hiked by Rs 8,000.

If the government makes announcement regarding the hike in fitment factor of central employees, then their salary will consequently increase. In fact, with the increase in fitment factor, the minimum wage will also increase. Employees are currently getting salary under fitment factor on the basis of 2.57 percent, which if increased to 3.68 percent, there will be an increase of Rs 8,000 in the minimum salary of the employees. This means the minimum pay of the central government employees will be hiked from Rs 18,000 to Rs 26,000.

Check out this assumptive salary calculation post the hike in fitment factor under 7th Pay Commission

If the fitment factor is raised to 3.68, the basic salary of the employees will become Rs 26,000. Right now, if your minimum salary is Rs 18,000, then excluding allowances, you will be getting Rs 46,260 (18,000 X 2.57 = 46,260) according to the 2.57 fitment factor.

Now, if the fitment factor is 3.68, then your salary will be Rs 95,680 (26000X3.68 = 95,680).

The Union Cabinet had in June 2017 approved recommendations of the 7th Pay Commission with 34 modifications. The new scales of pay provided for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e. Secretary, went up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary was at Rs 56,100.