7th CPC Notification – Eagerly awaited by Central Government employees!
The Ministry of Finance is expected to soon make a Office Memorandum and Notification regarding the implementation of the recommendations of the 7th Pay Commission.
Central Government employees are not the only ones who eagerly wait for news about the 7th Central Pay Commission. There is curiosity among all. The media has a lot to do with this development. Each day, at least one leading newspaper in India carries a story or a lengthy analysis about the 7th Pay Commission.
In order to defeat the purpose of the indefinite strike announced by all the leading Central Government employees’ unions, the Central Government has announced the formation of a separate committee to ponder over the important demands in the 7th Pay Commission report. The strike call was withdrawn only after the government assured them, in writing, that all their demands will be fulfilled within four months.
Although the list of demands is long, among the most important are the Minimum Pay, Fitment Factor, and HRA revisions.
There is curiosity among employees to know how much the current Minimum Pay of Rs.18,000 is increased by. Also worth mentioning is the fact that the government has approved the related Fitment Factor at 2.57, which was prescribed by the Pay Commission.
If the government decides to revise the Minimum Pay to Rs.19,000, then the Fitment Factor will also be increased. For example,
7000 x 2.57 = 17990 (18000), as originally calculated by the 7th Pay Commission,
7000 x 2.71 = 18970 (19000)
7000 x 2.85 = 19950 (20000)
Could be revised to 7000 x 3.00 = 21000 (21000), by the Central Government committee,based on its recommendations.
If the Minimum Pay increases, the Fitment Factor will also be higher. The new and Basic Pay of the Central Government employees are calculated based on the Fitment Factor. If an employee’s Basic Pay is Rs.10,000(including Grade Pay of Rs.1900), then it will be revised to 10,000×2.57 = 25,700 (or,26,000 as per the Matrix Table).
But when the above rule is modified, the numbers could be calculated as 10,000 x 2.71 = 27,100
10,000 x 2.85 = 28,500
10,000 x 3.00 = 30,000
The other big expectation is the House Rent Allowance. The 8, 16, and 24 percent system prescribed by the 7th Pay Commission is expected to be revised to the former levels.
Meanwhile, everybody is wondering about the terms and conditions that the 7th CPC Notification could contain.
Amidst all these expectations, one has to wait for the Ministry of Finance to release the Notification to find out what it has in store for the Central Government employees.