Seventh Pay Commission Faces Pay Gap Problem
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.
Seventh Central Pay Commission Chairman Justice Ashok Kumar Mathur
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
Regards,
E.R.Iyer
