It seems that nobody is satisfied
with their 7th Pay Commission pay hike. At every level there appears to be an
upward pressure on salaries and allowances, everyone deserve more pay than 7th
Pay Commission pay hike. The 7th Pay Commission pay hike has got recent media
attention, while, at the other end, there has been debate about the hiking of
pay on the recommendations 7th Pay Commission is proper or not.
According to the commission’s
recommendations, the minimum pay has been fixed at Rs.18,000 and the maximum at
Rs.2.5 lakh for the cabinet secretary, the country’s senior-most civil servant.
The commission had recommended a 14.28% increase in basic pay and the cabinet
went with ditto to it.
The previous 6th Pay Commission had recommended a
20 per cent hike which the government doubled while implementing it in 2008.
There has been widespread demand from
central government employee unions to hike the minimum pay to Rs.26,000; but
the government has not accepted the demand till date.
After the central government
employees union had threatened to carry out an indefinite strike, the government
had promised hiking minimum pay but they are not now in mood for hiking the
minimum pay.
Inequalities in pay can be damaging.
Excessive remuneration of top bureaucrats has been made to unnecessarily drive
up average pay in middle-lower ranks, and dramatic differences between levels
throughout government business can undermine motivation. In a wider social
sense, perceived inequalities between groups leads to huge discontent and
instability.
Aaccording to the notification of cabinet
approved 18 pay matrices, the rate of increase of cabinet Secretary’s basic pay
is 178 per cent as he got Rs 90,000 (fixed) in the immediate past under 6th pay
commission recommendations, while middle-lower ranks employees will now only
get 157% increase of their basic pay merging dearness allowances.
The pay ratio between the Indian top
most bureaucrat and the lowest grade employees in the 7th Pay Commission
recommendations is 1:13.9, which was 1:12 in the 6th Pay Commission
recommendations.
All pay commissions except 7th Pay
Commission made up pay gap between lower paid employees and top bureaucrats
from second Pay Commission 1:41 ratio to Sixth pay commission 1:12.
The first pay commission was
recommended pay of the top bureaucrats 41 times higher than the government employees
at the bottom. The top bureaucrats were given salary Rs 2,263 while the lowest
earning employees got Rs 55.
Subsequent pay commissions reduced
the ratio of pay between lowest earning employees and top bureaucrats from 1:41
in 1947 to about 1:12 in 2006, while 7th Pay Commission made it higher about to
1:14.
The cabinet has approved the hike of
the basic pay but decided to defer the recommended 63% allowances hike in the
government employees pay package and refer the matter to a committee headed by
Finance Secretary Ashok Lavasa.
Allowances contribute a lot in the
pay hike recommendation. If the allowance is not taken into consideration it
will mean fewer amounts because the allowance which the commission proposed is
very substantial.
The hike in allowances, which will
give them more money in the pocket, the compensatory perks for all central
government employees, which is likely to be paid from October 1 and no arrears
for allowances (except Dearness Allowance) is paid, as per usual practice, the
allowances is paid from the date of implementation. This also a cause of
unhappiness in central government employees.
However, Finance Minister Arun
Jaitley said in the Parliament in this month, “The Pay Commission has put a
burden of Rs 1.03 lakh crore.”
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