7th Pay commission recommended the minimum pay hike from Rs. 18,000 to Rs. 21,000 18 months back. Where government has been busy analyzing the recommendation of 7th Pay commission from past 18 months there, 50 Lakh central government employees have been hanging their hope high up for a hike in their salaries. Along with other factors influencing the implementation of the Seventh pay commission, inflation has become the major concern for the authorities.
As per the current report, the inflation has risen to the unexpected level as per the RBI standard chart. With the inflation growth risen to 4.2% -4.6% in second half of the fiscal year, the government is hesitant to increase the pay of the central government employees.
Increasing inflation Might Resist Government to implement 7th Pay Commission Recommendation
According to the latest reports, the inflation range has breached the benchmark set by RBI that is 4 percent. In the reports from the second half of the fiscal year, the inflation has risen to 4.2 percent to 4.6 percent along with the spike in the prices of crude oil in the global market. Although the Dearness allowance has been declared by the authorities to have no effect on the recommendations of the 7th Pay commission, still the authorities are not able to overpower the fact of rising inflation for the implementation of the minimum pay hike. Since the recommendation of increasing the salaries, 50 Lakh Central government employees are waiting for the good news. Over 18 months have been passed and the patience of the employees is continuously diminishing. Seventh Pay Commission is definitely struggling to implement the minimum pay hike in 2018.
Implementation of Salary Hike & Burden on the Government in 2018 under 7th CPC
Let us see the scenario from the side of authorities analyzing the recommendations of the 7th Pay commission regarding the salary hike. If the government implements the recommended pay hike at this time, the government will be encountering the additional burden of 1.02 Lakh crores (0.7 percent of entire GDP). Now, with this inflation on hands, it might not be feasible for the government to implement the recommended pay hike.
Although this is the scenario, still the government is busy finding a way to implement the minimum pay hike under 7th CPC. The reason behind the delay of increasing the salaries of the employees might be the concern of burdening authorities with additional cost.