Ahead of 15th August, a lot of speculations have been there regarding the hike in minimum pay. As per the words spreading across the media, the central government is willing to dole out hikes.
The government is likely to raise minimum pay to Rs 20,000 from Rs 18,000 that was recommended by the 7th Pay Commission or 7th CPC. The government may announce hike in minimum pay, beyond the recommendations of the 7th Pay Commission, with fitment factor 2.80 instead of 2.57 on the Independence Day.
Earlier, the 7th Pay Commission had recommended the minimum pay from Rs 7,000 to Rs 18,000 per month with a fitment factor of 2.57, to apply for lower level employees, which had got cabinet nod on June 29, 2016.
The 7th Pay Commission had also recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.
Also read: RBI hikes repo rate making home loan woeful
Many say that the proposal to hike the salaries would face a stumbling block from the Reserve Bank of India (RBI). The RBI had decided to increase the policy repo rate by 25 basis points to 6.5 per cent. The reverse repo rate had been hiked to 6.25 per cent, the RBI had said after its three day Monetary Policy Committee meeting.