Thursday, 11 February 2016

Secretaries panel on Pay Commission to double basic pay percentage

Secretaries panel on Pay Commission to double basic pay percentage

The secretary-level committee screening the 7th Pay Commission’s recommendations is likely to recommend to double the percentage of pay hikes what the pay commission recommended with examining the all previous pay commissions’ reports.

The 7th Pay Commission submitted its report to Finance Minister Arun Jaitley in November, recommending 14.27 per cent increase in basic pay of Central government employees, which is the lowest in 70 years.

The pay commission recommended fixing the highest basic salary at Rs 250,000 and the lowest at Rs 18,000and its increased the pay gap between the minimum and maximum from existing 1:12 to 1: 13.8.

Every 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.

The minimum basic salary of central government employees is now Rs 7730 while maximum salary at the level of Secretary is Rs 80,000.

Accordingly, the 7th Pay Commission didn’t go on line to consider reduction in the disparity of pay ratio between its highest and lowest paid employees.

Pay gap determines the socialism view of the government and the higher number of central government employees are in the minimum pay slabs.

The pay gap increases employee’s turnover and work-related illness, with all the associated economic consequences.

The bureaucrats with high pay are generally happier, healthier and a better place to live for almost everyone in them compare to the lower earning employees.

The central government set up the high-level Empowered Committee of Secretaries headed by Cabinet Secretary to examine the such type of issues related to the 7th Pay Commission report.

The Empowered Committee is continue receiving a lot of submissions of employees’ associations strongly opposed 14.27 per cent increase in basic pay, which was recommended by the 7th Pay Commission.

The previous Sixth Pay Commission had recommended a 20 per cent basic pay hike of central government employees, which the the secretary-level committee on that time recommended for 40 per cent basic pay hike .

Accordingly, the government doubled while implementing it in 2008.

So the government believes a 30 per cent basic pay hike of central government employees is the appropriate rate, in the present scenario and the Prime Minister’s Office (PMO) asked the secretaries Committee to process on this way, a PMO official told us but he requested anonymity because he wasn’t authorized to speak publicly.

This recommendation will now have to be considered by the secretaries Committee after the budget.
It is likely change to the hike in basic pay would be announced in April or May, he added.

The pay hike would affect the lives of over 48 lakh central government employees and 52 lakh pensioners and could trigger off similar pay hike across state governments as well.

The 7th Pay Commission has recommended a 23.55 percent hike in salary, allowances and pension involving an additional burden of Rs 1.02 lakh crore for the government, of which increase in salary would be Rs 39,100 crore, allowances Rs 29,300 crore and pension Rs 33,700 crore.

The new pay scales, subject to acceptance by the government, will come into effect from January 1, 2016.
Finance Ministry Jaitley had said that Budget for the next fiscal needs to provide Rs 1.10 lakh crore for implementing the 7th Pay Commission award and OROP.

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