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Seventh Pay Commission faces pay gap problem:TST

Seventh Pay Commission faces pay gap problem:TST

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New Delhi: Seventh Pay Commission faces serious challenge in submitting its recommendation to government till December for hiking salaries and allowances for central government employees as the employees’ unions test its account of controversial pay gap between top and bottom level government officials. 
The previous pay commission showed a wide gap in pay between the top bureaucrats and the government employees at the bottom.
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. 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 Seventh Pay Commission will have to consider reduction in the disparity of pay ratio between its highest and lowest paid employees because it 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.
A pay gap is calculated as the ratio of the pay of the highest paid employee of an organisation to the pay of the average or lowest paid employee in that organisation.
Seventh Pay Commission can make recommendations on promoting pay fairness in the central government employees’ fraternity by tackling disparities between the lowest and the highest paid central government servants.
The Seventh Pay Commission, headed by Justice Ashok Kumar Mathur was appointed in February 2014 and its recommendations are scheduled to take effect from January 1, 2016.
As part of the exercise, the Seventh Pay Commission holds discussions with various stakeholders, including organisations, federations, and groups representing civil employees as well as defence services.
The Commission is ready with its recommendations on revising emoluments for nearly 50 lakh central government employees and 55 lakh pensioners, and will submit report to the Finance Minister till December 31. 
Source: TST

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COMMENTS

WORDPRESS: 2
  • Finance minister and 7 cpc need to adress pay slabs and IT slabs
    Is pay Band between lowest and Highest pay really 1:12?
    well, the news regarding disparity is there for sure. but if increase in pay of lowest band is three times and upper band is also three times, one needs to calculate that upper band will come in 33% band of income tax. for top slab of 90000/- now, if gets increased to 2,70,000 pm, will have yearly pay of 32.4 lakhs. if it slabs remains same, and 1 lakh deduction is admissible, he will have to pay as under:-
    total pay – 32.4 lakhs, less 1 lakh deduction = 31.4 lakhs
    so tax will be 31.4-2.5 = 29.9 lakhs is 25,000/-
    then, on 29.9 – 5.0= 24.9 l is 1,00,000/-
    bal @ 30% on 24.9 l = 7.47 lakhs
    so, total comes 7.47+ 1+ .25= 8.72 lakhs plus surcharge @ 10% = 9.592 lakhs plus edu cess = say 9.7l which comes to around 81,000 pm
    lowest slab will not be in I Tax bracket, but higher slabs will attract high IT.
    there is need to raise IT slabs to
    first 3, 00, 000 – no IT
    next 3.0 l – 7.5 – 10%
    7.5 – 15 l = 20%
    above 15 l = 30% else msp and grade pay and da to be fully exempted.
    if this is not done than minimum band gets 21000/- with no income tax.
    Highest band gets 2,70,000 – 81000 = 1,89,000 effective, so ratio is 189000/21000 = 9.0 ie 1: 9
    which infact is less than 1:12 even if pay increase is 3 times as per previous pay commision.
    So, finance minister and 7 cpc need to adress pay slabs and IT slabs, else it will be given by one hand and taken back by other. Pay at entry level of 21000 where millions are there at start of their carrier can not be compared of one or few at top of band at 2,70,000 who has put in over 40 years of service with proven mettle, intelligence etc. if u too are good, enter at officer level and ride up ladder and don’t enter at 21000 and keep cribbing why someone at high band is getting high pay than you. Be realistic. Though I feel minimum pay at entry level should be 27000 or 30000 which will give pension of 15000 or 500 rs per day, which also is just sufficient for a pensioner. Also, family pension ceiling to be raised from 30% to 50% minimum. Pension at 60% or 70% can also be looked into to improve QUALITY of LIFE for ALL those who fought / willing to fight for country and substancial increase in PAY is bare minimum present govt can do to make all those people happy to an extent, who have been paid badly over the years to make two ends meet with food inflation, which is giving no respite, food being bare necessity. REST, have full faith in Hon PM mr Modiji and FM mr Arun Jaitly ji who are more competent to take decision in interest of countrymen, keeping in view of Financial state of Country.

  • MUTYA SOMAYAJULU 7 years ago

    Submission of 7th Pay Commission report till the last date will make the weaker section and middle class pensioners in a difficult position due to their old age and Govt not implementing medical aid to pensioners who live in villages and also in towns where there are are no referral Hospitals.