7th Pay Commission: Know why Millions employees Unhappy with recommendations on Allowances

| July 31, 2017

New Delhi: Millions of central government employees are currently unhappy with their allowances hike under the 7th Pay Commission recommendations. It seems that nobody is satisfied with their allowances hike. At every level there appears to be an upward pressure on salaries and allowances, everyone deserve more pay and allowances than 7th Pay Commission recommendations.

The current allowances hike has got recent media attention, while, at the other end, there has been debate about the hiking of pay and allowances on the recommendations 7th Pay Commission are proper or not.

The 7th Pay Commission slashed down House Rent Allowance (HRA), which constitutes a substantial part of central government employees’ salaries. The Commission had recommended HRA at the rate of 24 per cent, 16 per cent and 8 per cent of basic pay of the central government employees and the government stuck with the 7th Pay Commission’s recommendations on HRA and gave nod accordingly.

While The previous 6th Pay Commission had recommended HRA at the rate of 30 per cent, 20 per cent and 10 per cent for X, Y and Z category of cities respectively.

There had been widespread demand from central government employee unions to hike HRA at the rate of 30 per cent, 20 per cent and 10 percent of basic pay.

The hike in HRA, which gives more money in the pockets of the employees, that’s compensatory perks for all central government employees, which has been paid from July 1 and no arrears for allowances are being paid, as per usual practice, the allowances are paid from the date of implementation. This also a cause of unhappiness in central government employees.

All pay commissions except 7th Pay Commission made up pay gap in respect of basic pay 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 7th Pay Commission recommended a minimum basic pay for Central government employees of Rs 18,000 with a maximum pay of Rs 2.50 lakh per month.

The recommendations of the 7th Pay Commission got the Cabinet nod on June 29, 2016 in respect of basic pay, the pay panel had recommended a 14.27 per cent hike in basic pay — the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

After 18 to 19 months have passed since the 7th pay commission report was submitted and 12 months have elapsed since the union cabinet approved the 7th Pay Commission recommendations for hike in basic pay of central government employees, the Cabinet approved the recommendations on allowances on June 28 this year, which are being paid to the employees from this this month without arrears.

The central government employee unions expressed their resentment over the announcement of non payment of arrears on allowances. They demanded arrears on HRA from January, 2016.

Finance Minister Arun Jaitley had said in the Parliament in August 2016, “The Pay Commission has put a burden of Rs 1.03 lakh crore in respect of pay and allowances.” but he didn’t give arrears on allowances, which also included in this figure.

Category: News, Seventh Pay Commission

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