Published On: Fri, Jan 22nd, 2016

Employees’ unions attack Pay Commission minimum pay

New Delhi:The Central government employees’ unions has demanded to increase the minimum pay of central government employees, and a radical overhaul of the Seventh Pay Commission recommendations.

Finance Minister Arun Jaitley said the Seventh Pay Commission recommendations would add at least Rs 1.02 lakh crore spending in 2016.

Finance Minister Arun Jaitley said the Seventh Pay Commission recommendations would add at least Rs 1.02 lakh crore spending in 2016.

The Seventh pay commission recommended fixing the minimum pay Rs 18,000 and the maximum pay Rs 250,000, which increased the pay gap between the minimum and maximum from existing 1:12 to 1: 13.8.

The unions wants the minimum pay should be increased from Rs 18,000 per month to Rs 26,000.

It also want to phase the change in over 5 years instead of 10 years as a pay commission reviews the pay of central government employees every 10 years and its recommendations are usually accepted by government with some modifications.

The unions say the new minimum pay as they demanded should then be used as a “minimum pay benchmark” and the government should be able to set it for other category employees pay – using the benchmark as a guide – to compete pay fixation of all government employees including states.

The proposal attacks the very idea of a national minimum pay.

“Having a single national minimum pay advantages of all government employees attempting to gain a good pay where Indian wages are generally lower than in other countries, according tothe costs of living” the unions say.

The unions demand that a uniform minimum pay apply over the whole country.

Since there are no big differences in inflation conditions in each state, the pay policy of government employees in each state should be made on the principle of equal pay for equal work, they argue.

“There are wide differences in pay rates of government employees among the states. While the government employees get low pay in many states like West Bengal but the government employees of Uttar Pradesh get higher pay then central government employees,” they says.

The Seventh Pay Commission was set up by the UPA government in February 2014, The Commission headed by Justice A K Mathur recommended a 14.27 per cent increase in basic pay, the lowest in 70 years.

The previous Sixth Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

The government data shows that the pay panel recommended the lowest increase in basic pay i.e. 14.27 per cent since independence.

Every pay commissions except Seventh Pay Commission made up pay gap between lower employees and higher officers from second Pay Commission 1:41 ratio to Sixth pay commission 1:12.

However, the government decided to set up Empowered Committee of Secretaries headed by Cabinet Secretary P K Sinha on January 13, to process the recommendations of the Seventh Pay Commission in an overall perspective.

Finance Minister Arun Jaitley said on November 19 after receiving the Seventh Pay Commission report, the recommendations would add at least Rs 1.02 lakh crore spending in 2016 — the first year of implementation — if they are accepted.


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