7th Pay Commission: Minimum Wage to be Raised by Rs. 8,000; See Salary Calculation Here

Lakhs of employees working in various central government departments who have been eagerly waiting for the hike fitment factor may receive some positive news this month. According to media sources, the much-awaited conversation about increasing the fitment factor for central government employees under the 7th Pay Commission may be held in July.

According to a number of media sources, the government may shortly approve boosting the fitment factor under the 7th Pay Commission. The unions representing central government employees have long called for an increase in the minimum wage from Rs. 18,000 to Rs. 26,000 and a fitting factor increase from 2.57 to 3.68.

Employees of the central government will see a pay raise of Rs 8,000 if the government agrees to the demand to increase the minimum wage. The government will raise central employees' salaries if it announces an increase in the fitment factor for those employees. In fact, the minimum wage will rise together with the fitting factor.

Employees presently receive fitment factor pay based on a 2.57 percent formula; if this percentage is raised to 3.68 percent, the minimum pay for employees will increase by Rs 8,000.

As a result, the minimum wage for employees of the central government will increase from Rs. 18,000 to Rs. 26,000 per month.

Here is an assumptive salary calculation after the fitment factor hike:

If the fitment factor is increased to 3.68, the employees' base pay will increase to Rs 26,000 Currently, if your minimum income is Rs 18,000, the 2.57 fitment ratio will result in pay of Rs 46,260 for you (18,000 X 2.57 = 46,260), excluding allowances. Your pay will be Rs 95,680 if the fitment factor is 3.68 (26,000 X 3.68).

The 7th Pay Commission's recommendations were approved by the Union Cabinet in June 2017 after 34 changes.

At the lowest level, or entry-level, basic pay increased from Rs 7,000 to Rs 18,000 per month, while at the highest level, or secretary, it increased from Rs 90,000 to Rs 2.5 lakh. The initial pay for Class 1 officers was Rs 56,100.