7th Pay Commission: Developments on Hike in Minimum Pay, Fitment

On June 29, 2016, the government approved the recommendations of the 7th Pay Commission or 7th CPC hiking minimum pay and fitment factor for the central government employees. The 7th Pay Commission had recommended a 14.27 percent hike in basic pay, raising minimum pay from Rs 7,000 to Rs 18,000 month with fitment factor 2.57 times. Since then, the central government employees have been asking to raise minimum pay to Rs 26,000 and fitment factor 3.68 times.

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A day after the Cabinet cleared the 7th Pay Commission recommendations, Union Finance Minister Arun Jaitley had held a meeting with central government employees and promised them to appoint a high-level committee to look into the issue of hike in minimum pay and fitment factor. However, instead of the high-level panel, the government constituted the National Anomaly Committee (NAC) in September 2016 to resolve all matters related to the implementation of the 7th Pay Commission‘s recommendations.


There had been reports that the government gave its nod to the NAC for raising minimum pay to Rs 21,000 from Rs 18,000 with fitment factor 3.00. However, a letter from the Department of Personnel and Training (DoPT) to Secretary of Staff Side Shiv Gopal Mishra stated that the demand for an increase in minimum pay and fitment formula beyond the recommendation of the 7th Pay Commission does not appear to be treated as an anomaly, therefore, these do not come under the purview of the NAC.

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There are reports that the government is likely to form a high-level committee to fix new pay structure beyond the recommendation of the 7th Pay Commission. No official announcement has been made so far. According to a report of Sen Times, officials in the Finance Ministry assured that the government will hike the salary of lower-paid employees beyond the recommendations of the 7th Pay Commission. Those of mid-level and senior level employees will continue to get salary as the 7th Pay Commission’s recommendations.

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