New Delhi, February 6: For around 48 lakh central government employees who are eagerly waiting for their pay hike under 7th Pay Commission, it is learnt that Finance Minister Arun Jaitley have assured to raise their salaries, The Sen Times report.
The report said those employees who are getting salaries from pay matrix level 1 to 5 will also see a hike in their salaries. Also, the proposal of pay hike will be sent to Cabinet at the beginning of April for approval, the report further said.
The government will consider the state of the economy before issuing inflation-targeted pay hike in terms of which employees’ salaries will fix with the fitment formula 3.00 times as against 2.57 times of basic pay under 6th Pay Commission, which got the approval of cabinet two years ago.
According to a report, the Finance Ministry has made some inputs, including fitment formula and which employees to be covered under new pay hike for raising salaries.
Finance Minister Arun Jaitley, who presented the Union Budget on February 1, has put pressure on the salaried class, who he acknowledged, paid almost three times the income tax as compared to the segment of the business and professional class of individuals.
FM Jaitley kept the income tax slabs unchanged, he made minor tweaks in the salary component by replacing the annual Rs 15,000 medical reimbursement and Rs 19,200 transport allowance by a standard deduction of Rs 40,000.
This move has also given the salaried class employee a benefit of mere Rs 5,800 a year.
In Rajya Sabha, the government has also promised to hike the pay of the central government employees beyond the suggestion of the 7th Pay Commission.