7th Pay Commission - Government's latest announcement

In a move that could bring cheers to over 23 lakh retired employees of universities and colleges, the Narendra Modi government on Tuesday said it has revised the pension of retired faculty and other non-teaching staff in central universities and colleges under the 7th Central Pay Commission.

Union HRD Minister Prakash Javadekar said as per the recommendations of the 7th Central Pay Commission, the centre government has increased the pension of retired faculty and other non-teaching staff in central universities and colleges, which would benefit around 25,000 present pensioners in these institutions.

He also added that these 25,000 pensioners would be given benefit to the tune of Rs 6,000 to Rs 18,000. “Around 25,000 present pensioners will benefit in Central Universities and the UGC maintained deemed to be universities to the tune of Rs 6000 to Rs 18, 000,” Javadekar tweeted.

Apart from providing benefits to these 25,000 pensioners, the decision will also affect over 23 lakh employees retired from state universities and affiliated colleges — those who have adopted the prescribed pay scales. “The present move of centre government would benefit approx. 8 lakh teachers and 15 lakh non-teaching staff who retired from state public universities and affiliated colleges, who wish to adopt or have adopted pay scales prescribed for central universities,” Javadekar tweeted.

However, the government has not taken any decision to increase the ‘minimum pay and fitment factor’ beyond the 7th Central Pay Commission recommendations, which could provide benefits to over 48 lakh central government employees. In March, Minister of State in Finance P Radhakrishnan told the Rajya Sabha no decision had been taken in this regard, and that the benefits recommended in the 7th Pay Commission remained as such.

“The minimum pay of Rs 18,000 per month, and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration,” he said.

There is, however, speculation that PM Narendra Modi would dole out this bonanza to appease employees on the Independence Day on August 15. Media reports say PM Modi is holding his ‘trump card’ as of now but could announce the hike in the salaries of the central government employees and also increase the retirement age to 62 before the General Elections in 2019, probably on August 15.

The Narendra Modi government had increased the salaries of the central government employees by 14 per cent in January. However, most employees were unhappy with the fact that the hike was not enough, considering rising inflation and cost of living.

Source: BT