Seventh Pay Commission Likely To Reduce Pay Ratio From 1:12 To 1:9

| October 27, 2015

Seventh Pay Commission Likely To Reduce Pay Ratio From 1:12 To 1:9

jp mathurNew Delhi: Seventh Pay Commission is likely to recommend to reduce pay ratio from 1:12 to 1:9 for the bottom grades employees and higher rungs’ pay structure to add a populist hue.

The Commission, which will submit its report to the Finance Minister for approval within December 31, suggest increasing the salary ratio of bottom level central government employees for coping with high inflation.

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.

The Pay Commission is likely to recommend increase 40 percent salaries hike of central government employees on average, the full implementation of which would raise the central government spending on salary and allowance Rs 1,00,619 crore.

The commission may recommend Rs 20,000 as salary for those in the bottom grade and maximum Rs 180,000 for Secretary level officers.

The sources in the panel said pay parity ratio of mid-level tier officers will be maintained with the bottom grade.

Earlier, all pay commissions had not only recommended for good salary to top central government officials but also considered the disparity ratio between its highest and lowest paid employees.

For instance, in 1948, the post-tax salary of the highest paid government official was Rs 2,263 which was 41 times higher than the Rs 55 paid to the lowest earning employee. With subsequent pay commissions the ratio was reduced to about 1:12 in 2006.

“The Seventh Pay Commission may consider pay ratio of the pay of the bottom paid employees to the pay of the highest paid officials will come down to 1:9 from 1:12, “the official said.

The first pay commission was recommended Rs 55 salary to the lowest earning employee, second Rs 80, third Rs 185, fourth Rs 750, fifth Rs 2550 and sixth Rs 6660.

“However, the Seventh Pay Commission is likely to recommend Rs 20,000 salary for lowest paid employees and Rs I,80,000 for highest paid officials, “ he added.

The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and often states also implement the panel’s recommendations after some modifications.

As part of the exercise, the current Pay Commission holds discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as defence services.

The Sixth Pay Commission was implemented with effect from January 1, 2006, the fifth from January 1, 1996 and the fourth from January 1, 1986. The Seventh Pay Commission will be implemented with effect from January 1, 2016.


Category: News, Seventh Pay Commission

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